Tribunal Issues Conflicting Judgements, Says VAT Payable On Imported Services

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.