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 was 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 (#15000). The VAT calculation is 7.5%, what amount will the vendor pay?
(7.5 X 15000) / 100 = 1125
= 15000 + 1125
= 16125
The new amount that the vendor will pay for the above basic sponsored product package is now 16125
Example 2
A vendor is selling a a mobile phone which falls under the Phones and Tablet category with #240 Shipping cost, how much will the new shipping cost be, put into consideration the new 7.5% VAT charges?
(7.5% X 100) / 240 = 18
= 240 + 18
= 258
The new shipping cost will be #258
| Shipping Cost Contribution | Dropshipping | Jumia Express |
| Small | 600 | 240 |
| Medium | 1,040 | 500 |
| Large | 2,790 | 1,320 |
