ARTICLE
19 September 2018

Court Rules That Companies Should Self-Charge VAT 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 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").
Nigeria Tax

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

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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