Court Ruling Solidifies FIRS’s VAT Authority on Bolt Services
The Lagos Federal High Court has decisively backed the Federal Inland Revenue Service (FIRS) in its right to collect Value Added Tax (VAT) on transportation and food services facilitated by Bolt drivers and food vendors. This ruling, delivered on Thursday by Justice Akintayo Aluko, concludes a legal dispute that commenced in 2022 and reinforces the FIRS’s ability to generate revenue from the digital economy, a crucial aspect of modernizing tax collection in Nigeria and other African nations.
Legal Battle and Court’s Affirmation
The court’s decision affirms a prior ruling from the Tax Appeal Tribunal (TAT), which recognized the FIRS’s legal standing to designate Bolt as a VAT collection agent for services provided by independent drivers and food vendors operating through the platform. Bolt’s legal representatives had contested the FIRS’s classification, arguing that the platform was not directly providing transportation or food services and lacked a physical presence within Nigeria. However, the FIRS’ counsel, Moses Idaho, countered these claims by emphasizing the correct interpretation of existing tax laws. The court ultimately sided with the FIRS, thereby upholding its authority to collect VAT on these transactions. This decision has major implications, shaping how digital service platforms like Bolt will operate in the Nigerian and broader African economic landscape, as tax compliance becomes increasingly important for businesses.
Keywords
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