Nigeria: A Landmark TAT decision in a VAT case on imported services

PwC secures a Landmark TAT decision in a VAT case on imported services

In brief

On 10 June 2015, the Tax Appeal Tribunal (TAT) sitting in Abuja held that foreign companies providing services outside Nigeria to Nigerian companies are not carrying on business in Nigeria for the purposes of the Nigerian Value Added Tax (VAT). As they are not carrying on business in Nigeria, they are not required to register for, or charge Nigerian VAT. A Nigerian company that has not received a VAT invoice from the foreign company is not required to account for or remit VAT to the FIRS.

This decision provides some clarity on the often disputed position of the FIRS that a Nigerian company should self-charge VAT on services received from a foreign entity even when such provider is not carrying on business in Nigeria.

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