The applicability of Value Added Tax (VAT) to rental income derived from property leases in Nigeria has been the subject of controversy. This stems from the uncertainty as to whether leases, in the first place, constitute “supply of goods and services”, and more recently, whether leases, which confer a right to use real property, can be regarded as ‘interest in land’, based on the amendments introduced by the Finance Act, 2019 (Finance Act).
Source: andersentax.ng