May 17, 2016

Magnus Amudi: VAT on Imported Services –Vodacom Business Nig. Limited v. FIRS


Under the Nigerian Value Added Tax Act 2007 (the “Act”), “imported services” are liable to the imposition of value added tax (“VAT”) as they are not specifically listed under the tax-exempt items. The Act defined “Imported service” as service rendered in Nigeria by a non-resident person to a person inside Nigeria.

As a general rule, a foreign company which supplies goods and services in Nigeria without a physical presence in Nigeria is neither required to register for VAT with the Federal Inland Revenue Service nor charge/issue a VAT invoice.  This is because the foreign company cannot be said to be carrying on business in Nigeria, and has no physical presence in Nigeria. This position was supported by the Abuja Zone of the Tax Appeal Tribunal (established to decide tax disputes) (“TAT”) inGazprom Oil & Gas Ltd v. Federal Inland Revenue Service (“FIRS”).Consequently, the consumers of such goods and services in Nigeria were not subject to pay VAT.


However, the Lagos Zone of the TAT in Vodacom Business Nigeria Ltd v. FIRS supported the decision in Gazprom above, but only to the extent that a foreign company which supplies goods and services in Nigeria without a physical presence in Nigeria is neither required to register for VAT with the Federal Inland Revenue Service nor charge/issue a VAT invoice. It however dissented with the part of the decision that stated that the Nigerian consumers of such imported services are not subject to VAT. It relied on the destination principle in reaching this conclusion. By this recent decision, it appears that consumers of imported services are obligated to pay VAT in Nigeria.

As such, it is expect that the FIRS will seek to enforce this decision pending the determination of the appeal of Vodacom to the Federal High Court.
Ed’s Note- This article was originally published here


Share:

1 comment:

  1. Thank you so much for taking time to read my blog. I read all my comments and appreciate each and every one!

    Register for VAT

    ReplyDelete

Blog Archive

AELEX Annual Lecture

AELEX Annual Lecture
AELEX Annual Lecture

ORDER NOW

The Nigerian blawg

Disclaimer:- Posts and comments by the publishers of this blog do not constitute legal advice or create an attorney-client relationship.

Follow by Email

Advertise your property

Property Listings

  • SALE-4bedroom duplex With 3 living rooms. Located at Opic Harmony Estate. Asking 80m Title Global C of O/ consent in progress. 08055424566
  • FOR SALE 8bedroom duplex 2 living rooms With 2 rooms BQ N150m Located off CMD Road Magodo Registered Title Contact 08055424566
  • Property for Rent – New Building, 4 unit luxury 2 bedroom flat available at Rafiu Ipaye Street, Ijesha, Surulere. Ground floor back flat- 700k per anum, First floor back flat – 750k per anum, 2nd floor back flat – 750k, 2nd floor front flat – 800k. Service charge - 75k per anum. Refundable caution – 70k. Call 08055424566 for details.
  • Property For Sale!!! A fenced and gated uncompleted 3 bedroom site on a full plot of land is available for sale at Igbetu via Awoyaya, behind Mayfair Gardepn Estate, Ibeju-Lekki, Lagos for sale. Price is N20million and Title Documents include, Family Receipt,  Deed of Assignment and Global C of O. Contact 08055424566 for more information
  • PROPERTY FOR SALE!!!!!!!!  A 5 Bedroom Duplex with 2 room BQ formerly used for a Nursery & Primary school is available for sale in Iyana Ipaja, Lagos  Building contains 9 CLASSROOMS, 2 OFFICE SPACES, 1 LARGE RECEPTION, 8 TOILETS, 5 BATHROOMS, KITCHEN,PLAY AREA. The seller's title is a certificate of Occupancy and the asking price is 35 million Naira.  Contact 08055424566 for more details 
  • List your property for rent or sale here

CONTACT US

Name

Email *

Message *

Powered by Blogger.