The origin of this action dates to the appointment of Bolt Operations OU (the “Company”) as a Non-Resident Supplier (“NRS”) by the FIRS under its Guidelines on Simplified Compliance Regime for Value Added Tax (VAT) for Non-Resident Supplies dated 11 October 2021. In letters dated 26 July 2021, 4 February 2022, and 11 April 2022, the FIRS mandated the Company to charge and collect VAT on all invoices processed through its platform, regardless of whether the Company is the supplier of the goods or services. The Company argued that it is a non-resident supplier/company (NRS or NRC) for VAT purposes since it is not incorporated in Nigeria, and the only taxable supply it provides in Nigeria is connecting independent transporters and restaurants with customers on its platform. The Company stated that it charges the drivers and restaurants a commission for this service, and it is fully compliant with the provisions of Section 10 of the VAT Act by remitting the VAT charged and collected/accounted for on its commission.
Source: mondaq.com
