Nigeria’s Court of Appeal upholds judgment of Federal High Court regarding imposition of VAT on services provided by nonresident companies

Nigeria’s Court of Appeal (COA or the Court), sitting in Lagos delivered a judgment on 27 June 2019 upholding the judgment of the Federal High Court (FHC) in the case of Vodacom Business Nigeria Limited (VBNL) vs. Federal Inland Revenue Service (FIRS) on the imposition of value added tax (VAT) on services rendered by a nonresident company (NRC).

The Court, deciding in favor of the FIRS, ruled that where goods and services were exchanged for consideration in line with Section 2 of the VAT Act, and where such goods and services do not fall within the list of exempt goods and services as specified in the First Schedule to the Act, such transactions should be liable to VAT.

Source EY

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