- Under the Nigeria Tax Act 2025, rent on commercial property is exempt from VAT.
- The exemption applies to all land or buildings, with no distinction between residential and commercial use.
- Rent is considered a payment for an interest in land or building, which is explicitly VAT-exempt.
- VAT is only chargeable if the transaction includes separately identifiable taxable services beyond the lease or rental itself.
- Tax decisions should be based on the law’s clear wording, not assumptions.
Source: africataxreview.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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