Bolt Challenges FIRS Tax Authority in Appeals Court over VAT on Drivers and Vendors
E-mobility giant Bolt is escalating its legal battle against the Federal Inland Revenue Service (FIRS) by appealing a Lagos High Court ruling that empowers the FIRS to collect Value Added Tax (VAT) from its drivers and food vendors. This move represents the latest attempt by Bolt to contest the tax collector’s authority over its platform operations.
Bolt’s Appeal Against VAT Collection
In its appeal, reported by Punch News, Bolt raises concerns about fair hearing and challenges the FIRS’s imposition of a 5% VAT on suppliers whose turnover falls below the N25 million threshold. The company is specifically seeking to overturn the Lagos High Court’s June 24, 2025, decision, presided over by Justice Akintayo Aluko, which upheld the FIRS’s right to appoint Bolt as a VAT collection agent under Section 10(3) of the VAT Act. This High Court judgment had affirmed an earlier ruling by the Tax Appeal Tribunal (TAT), providing the FIRS with the legal justification to levy a 5% VAT on independent ride-hailing drivers and food vendors operating through Bolt’s digital platform.
The outcome of this appeal could have significant implications for the gig economy in Nigeria and the tax obligations of digital platforms and their associated service providers. It will be a crucial moment for clarifying the regulatory landscape for e-mobility and food delivery businesses operating in the country.
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