VAT

#What is charged

VAT is 7.5%, the same for every organization, in Nigeria or anywhere else, whether you are billed in naira or US dollars.

It is added to one thing only: the invoice issued when your billing period closes. The invoice adds VAT on top of the period's usage, then is collected as usual: from your credit first, then your saved card, with the usual retries.

#What carries no VAT

• Activation credits, the payment that sets up your account.
• Adding funds: a top-up goes into your credit at its full amount.
• The upfront payment for a new virtual machine or database.

Credit and upfront payments are not taxed when you pay them. When they are applied to an invoice, they pay its total, VAT included. VAT is charged once, on the invoice, never on the credit itself.

#How it is worked out

VAT is worked out once per invoice, on the period's usage (the subtotal), in kobo or cents, and rounded half up to the nearest kobo or cent:

#On your invoice

An invoice lists, in order:

Invoices issued before VAT was introduced show no VAT.

#Refunds

If any part of a paid invoice is refunded, the refund returns VAT in the invoice's own proportion. A refund of ₦1,000.00 from an invoice of ₦10,000.00 plus ₦750.00 VAT returns ₦930.23 of usage and ₦69.77 of VAT, which is ₦1,000.00 × 750 / 10,750, rounded half up to the kobo.

Each refund is worked out on the running total refunded from that invoice, so several partial refunds that together refund the whole invoice return exactly its VAT: never a kobo more or less. Refunds go to your credit balance.

The refund receipt is a credit note against the invoice. It shows the refunded subtotal, the VAT (7.5%) refunded, and the total refunded. Money that was never taxed, such as activation credits, top-ups and upfront payments, returns no VAT.

When Pantech's VAT registration number is set, it is printed on every receipt, credit note and invoice email.

#Prices and estimates

Every price in the console, on the pricing pages, and in quotes and estimates, such as a create form's Upfront payment (40%) and If it runs all month, excludes VAT. The estimate of your next invoice, which your credit is compared against, includes VAT.

#In the API

Money is in minor units, as everywhere in the API.

• An invoice has tax_minor, tax_rate_bps (750 is 7.5%) and total_minor, which is subtotal_minor plus tax_minor. total_due_minor is total_minor plus brought_forward_minor, less credit_applied_minor.
• The usage summary has tax_rate_bps, estimated_tax_minor and estimated_total_minor.
• The credit outlook's estimated_next_invoice_minor includes VAT.
• A refund receipt for an invoice lists the VAT it returns among its facts.