ARTICLE
14 April 2016

Tribunal Issues Conflicting Judgements, Says VAT Payable On Imported Services

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PwC Nigeria

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PwC Nigeria is one of the leading professional services ?rms in Nigeria with of?ces in Lagos, Abuja and Port Harcourt, with over 1,000 staff and 31 resident partners. We are committed to serving as a force for integrity, good sense and wise solutions to the problems facing businesses and the capital markets. We are guided by one promise – to do what is right, be it with our people, clients, community, or environment.
The Tax Appeal Tribunal Lagos division held that a Nigerian company that receives services performed by a non-resident company should account for and pay Value Added Tax.
Nigeria Tax

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 recipienthas 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

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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