- Lawyers are calling for a review of the Federal Government’s policy requiring a 7.5% VAT on legal services, arguing legal services are not goods or commercial transactions.
- The new tax law mandates all lawyers and law firms to remit VAT on professional services starting January 1, 2026, with certain exemptions for low-income earners and small businesses.
- The government insists legal services are taxable and that the reform aims to expand the tax net, promote fairness, and increase revenue.
- Some lawyers argue that taxing legal fees could hinder access to justice.
- FIRS warns that non-compliance will attract penalties and urges all legal practitioners to register, file VAT returns, and remit collections.
Source: newtelegraphng.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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