Tax & Business Matters - Nigeria

Tribunal Issues Conflicting Judgements, Says VAT Payable on Imported Services

The Tax Appeal Tribunal (TAT) Lagos division held that a Nigerian company that receives services performed by a non-resident company should account for and pay Value Added Tax (VAT).

The TAT also held that since a non-resident company which provided the service is not bound by the VAT Act, the Nigerian company which enjoyed the service has a duty to self-charge and remit the VAT.

In arriving at its decision the TAT refused to follow the earlier decision of the TAT Abuja division in Gazprom Oil and Gas v FIRS that non-resident companies not carrying on business in Nigeria are not required to register, charge or include VAT on their invoices and the Nigerian recipient has no legal obligation to self-charge and remit the VAT.

See our alert below for details and a copy of the TAT ruling for your reference.

Download PwC Tax Alert_VAT is chargeable on imported services_April 2016

Download TAT ruling says VAT is payable on imported services_Feb2016

Introducing PwC Nigeria's YouTube Videos (Tax Podcasts) - Keeping you informed!

We have launched another valuable platform (YouTube Videos) to share tax updates and trends "On-the-Go " on a regular basis.

This platform will be useful for the C-Suite, Finance and Tax Executives to keep up to date on tax trends within their busy schedules as useful information is provided in a few minutes with clarity. We invite you to visit our YouTube page, subscribe to our channel (so you can be notified when new videos are available).

Below are the first series of the Tax Podcast episodes

Tax is the new black gold

The changing tax landscape

Some recent decided cases on tax

Trending news in Nigeria's tax space

 

Tax and Economic Action Plans from the Recent National Economic Council Retreat

On the 21^st and 22^nd March 2016, the National Economic Council held a strategy retreat at the state house in Abuja. The aim of the retreat was to develop strategic initiatives that would be implemented to diversify the economy and address revenue challenges.

Some of the key resolutions regarding revenue generation include improved collaboration between the Federal Inland Revenue Service (“FIRS”) and the State Internal Revenue Services (“SIRS”), possible gradual increase in VAT rate, and tax harmonization.

Read our alert for more insights Download NEC retreat_Tax alert

Also link to the 71 action points as reported in the media NEC Retreat Resolutions