VAT (7.5%) on Bumpa Services — Nigerian Merchants

Created by Bumpa Support, Modified on Mon, 9 Mar at 5:48 PM by Bumpa Support

To comply with tax regulations set by the Federal Inland Revenue Service (FIRS), Bumpa will apply a 7.5% Value-Added Tax (VAT) to applicable services used by Nigerian merchants starting 1st March 2026.

The VAT applies only to Bumpa’s subscriptions and transaction service charges, not to the prices of the products you sell and not to the full value of a customer’s order. In simple terms, your product prices remain the same; the tax is calculated only on the platform transaction charges processed through Fincra, Paystack, Nomba, Pocket, and the Bumpa Terminal or any Bumpa subscription or in-app purchases.

This change is regulatory. The VAT collected is remitted to the relevant tax authority and is not retained by Bumpa. Your subscription fee has not been increased; the government tax is simply applied to existing transaction charges, Bumpa service subscriptions, and related purchases.

Where VAT Applies

The tax covers paid services provided within the platform.

Service Categories	Descriptions
Transaction Charges	Payments processed via Fincra, Paystack, Nomba, Pocket, and Bumpa Terminal
Subscriptions	All Bumpa subscription plans
In-App Purchases	Domain names, messaging credits, staff accounts, store locations
Store Customisation	Themes and extensions
Future Paid Features	Any new paid tools added later in the future

NOTE:

This is not a price increase by Bumpa.
Bumpa does not keep this tax.
The price of your subscription has not changed.
The government tax is simply added to the existing transaction and Bumpa subscription fee, similar to how VAT appears on an internet or courier bill.

Example for Order Transaction

Description	Amount (₦)
Total cart price	100,000
Paystack Transaction charge (1.2%)	1,200
VAT (7.5% of the 1,200 transaction fee)	90
Total service fees (transaction charge + VAT)	1,290

Tips to manage this charge

If you currently absorb transaction fees on Bumpa, you may slightly adjust your product prices to cover the cost.
You can also choose to pass the transaction charge to your customers (available in your store settings). Learn more here

Note: VAT on transaction fees will not exceed ₦225, as transaction charges are capped at ₦3,000.

Example for Bumpa Subscription Cost

Plan	Cost (₦)
Bumpa Pro (One Year)	100,000
VAT (7.5% of 100,000)	7,500
Total payable	107,500

P.S. This applies to all Bumpa subscription plans.

This option allows you to complete your subscription payment without the extra Apple charge applied to in-app purchases.

Example for Bumpa Add-ons Cost

Add-on	Cost (₦)
Bumpa Theme (Allure Theme)	100,000
VAT (7.5% of 100,000)	7,500
Total payable	107,500

P.S. This applies to all paid themes

Add-on	Cost (₦)
Custom Domain (.com) new purchase	23,927
VAT (7.5% of 23,927)	1,794.56
Total payable	25,721.56

P.S. This applies to all Domain purchases and renewals.

Have any questions or concerns, please contact our support team