In line with the Federal Government’s directive on the Finance Act 2019, the Value Added Tax (VAT) applicable on goods and services offered by Jumia is 7.5% which took effect on 1st of February 2020.
Examples on how to calculate the VAT charge
Let us assume that a vendor wants to purchase a basic sponsored product package (#15000). The VAT calculation is 7.5%, what amount will the vendor pay?
(7.5 X 15000) / 100 = 1125
= 15000 + 1125
The new amount that the vendor will pay for the above basic sponsored product package is now 16125
A vendor is selling an Airconditioner which falls under the Home catergory with a weight of over 50kg which Jumia tags as “Large Item” the shipping cost contribution for Jumia Express will be N1,320 while for Dropshipping it will be N2,920, how much will the new shipping cost be, put into consideration the new 7.5% VAT charges?
(7.5 X 1320) / 100 = 99
= 1320 + 28.5
The new shipping cost will be #1,419
You can do the same calculation for the dropshipping model to know the final value.
|Shipping Cost Contribution||Dropshipping||Jumia Express|