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 would be increased from 5% to 7.5% effective on the 1st of February 2020.

Examples on how to calculate the VAT increment

Example 1

Let us assume that a vendor wants to purchase a basic sponsored product package (#8500). The VAT calculation is 7.5%, what amount will the vendor pay?

(7.5 X 8500) / 100  = 637.5 

                              = 8500 + 637.5

                               = 9,137.5

The new amount that the vendor will pay for the above basic sponsored product package is now 9,137.5

Example 2

A vendor is selling a cooling system which falls under the Automobile category with #390 Shipping cost, how much will the new shipping cost be, put into consideration the new 7.5% VAT charges?

(7.5 X 380) / 100 = 28.5

                           = 380 + 28.5

                           = 408.5

The new shipping cost will be #408.5

Example 3

If 25 pieces of small branded cartoon packaging material cost #900, how much will it cost if the VAT charge is 7.5%?

(7.5 X 900) / 100 = 67.5

                            = 900 + 67.5

                            = 967.5

The cost of the packaging material will be #967.5

Commission Fee

Please note that the commission’s fee is inclusive of VAT (7.5%). The Minimum Commission for Health & Body and Baby Products is 100 NGN… All other Categories are 300NGN. There is No minimum commission for Fashion and Groceries