The Federal High Court in Lagos has upheld the authority of the Federal Inland Revenue Service (FIRS) to charge, collect, and remit Value Added Tax (VAT) on transportation and food services provided by independent drivers and vendors operating on platforms such as Bolt.
In a judgment delivered by Justice Akintayo Aluko, the court affirmed an earlier ruling of the Tax Appeal Tribunal (TAT), which had validated FIRS’s actions under Section 10(3) of the VAT Act. The judge ruled that there was no basis to overturn the Tribunal’s decision.
“Going by the evidence relied upon by the Tax Appeal Tribunal as revealed in the Records of Appeal, which form the basis of its judgment under scrutiny, the respondent acted within the law in appointing the appellant pursuant to Section 10(3) of the VAT Act,” Justice Aluko held.
He further stated: “There is no valid reason to disturb the judgment of the Tribunal. Consequently, the judgment of the Tribunal delivered on 26th May 2023 is affirmed. The appeal thus fails, and it is accordingly dismissed.”
The court also awarded a cost of N1 million in favour of FIRS against the Bolt operators, reinforcing the legal stance that digital platforms offering services within Nigeria are not exempt from VAT obligations.
This ruling is expected to set a precedent for the taxation of services delivered through ride-hailing and food delivery apps, ensuring greater regulatory compliance in Nigeria’s fast-growing digital economy.
