Tax Appeal Tribunal Holds that Lease of Real Property is not subject to VAT

On 10^th September, 2020, the Tax Appeal Tribunal (“TAT”) in the case of Ess-ay Holdings Limited (“Ess-ay Holdings” or “the Company”) v Federal Inland Revenue Service (“FIRS”) held that a lease of real property whether for commercial or residential purposes does not amount to a supply of goods and services and therefore not subject to Value Added Tax (VAT). In reaching its decision, the TAT held that a lease of real property amounts to a transfer of incorporeal rights which is outside the scope of the VAT Act.

Sources:

• andersentax.ng
• KPMG