On May 24, 2019, the Court of Appeal (the Court) in the case of Al-Maseer Law Firm v Federal Inland Revenue Services , held in a unanimous decision that lawyers in private practice are under a legal obligation to collect Value Added Tax (VAT) from clients and remit same to the Federal Inland Revenue Services (FIRS).
The Court further held that registration under the Value Added Tax Act, Cap VI, LFN 2004 (as amended) (VAT Act or the Act), is not per se a precondition for payment of VAT.
The implication of this decision is that the FIRS may issue a demand notice on a legal practitioner or any other taxable person to make returns on VAT; it is immaterial whether the taxable person is registered as a VAT collection agent and/or collected VAT from the consumers of his goods and services.
Source: sololaakpana.com
