Nigeria: Rental income from real properties exempt from VAT, says Tax Appeal Tribunal

• Rental income from real properties in Nigeria is not subject to value added tax (VAT)
• The Tax Appeal Tribunal Lagos Zone made this decision in the case of NGX Real Estate Limited v. Federal Inland Revenue Service
• The tribunal agreed that a transaction must qualify as a supply of goods or services to be subject to VAT
• Rental income from land and buildings does not constitute a taxable supply of goods
• A lease giving possessory rights to a tenant is not considered a taxable supply of services.

Source: kpmg.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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