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.
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