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.
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