The Digest:
A Lagos federal high court has upheld the authority of the Federal Inland Revenue Service (FIRS) to collect VAT on services offered through platforms like Bolt. The decision affirms FIRS' right to appoint these platforms as VAT collection agents.
Key Points:
- Federal High Court affirms FIRS’ power to collect VAT on services via Bolt.
- The judgment follows a case between Bolt operators and FIRS over VAT imposition.
- The court upheld the tax authority’s decision to appoint digital platforms as VAT collection agents.
- The ruling supports FIRS’ authority under Section 10 of the VAT Act.
- Bolt operators had challenged the decision, citing violations of tax laws.
- The case originated in 2022 with Bolt appealing the VAT charges.
- The court dismissed the appeal, awarding N1 million in costs to FIRS.
The court's ruling strengthens FIRS' authority, ensuring digital platforms like Bolt collect VAT on services. The judgment adds clarity to the regulation of online services in Nigeria.
Sources: TheCable, Premium Times, Channels TV
