In Chief J.W. Ellah & Sons Company Ltd v FIRS and Essay Holdings Ltd v. FIRS decided by the Tax Appeal Tribunal (TAT) in Benin and Lagos Zones respectively, the TAT delivered conflicting decisions on whether commercial leases are subject to Value Added Tax (VAT). Both zones also adopted different approaches to the role of Information Circulars in interpreting statute.
The appeals were contested under the VAT Act, LFN 2004 (VAT Act, 2004). Prior to the amendments by the Finance Act 2019 (FA 2019), there was no clear
definition of goods and services which further added to the controversy regarding the VAT status of property leases.
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