Tax & Business Matters - Nigeria

Court rules that companies should self-charge VAT on imported services

The Federal High Court (“FHC”) overruled the decision of the Tax Appeal Tribunal (“TAT”) in Gazprom Oil & Gas Nig. Ltd vs. Federal Inland Revenue Service (“FIRS”). At the TAT, Gazprom Oil & Gas Nig. Ltd was able to establish that it received consultancy and advisory services from foreign/non- resident companies. On the basis that the services were wholly performed outside Nigeria, the TAT discharged the FIRS re-assessment notices based on Section 10 of the VAT Act.

The FHC identified the sole issue for determination as “whether the supply of goods and services made by a non-resident company to a Nigerian company or person should be subject to VAT”. The FHC applied S.10(1) & (2) and 12 of VATA in reaching a judgment.

See our alert below and a copy of the judgement.

Download PwC's Tax Alert_FHC on VAT and imported services_Sep2018

Download FIRS v. GAZPROM_FHC Judgment on VAT on Imported Services_19June18

FIRS has issued a public notice regarding the filing of information required under the recently released Income Tax (Country-By-Country) Reporting Regulations 2018.