The Federal High Court in Lagos has ruled in favor of the Federal Inland Revenue Service (FIRS) regarding Value Added Tax (VAT) on services provided through the Bolt digital platform.
The court upheld FIRS’ power to charge, collect, and remit VAT on food and transportation services provided through Bolt, affirming an earlier Tax Appeal Tribunal (TAT) decision.
The court ruled that Bolt can be designated as an agent responsible for VAT compliance on behalf of independent food vendors and ride-hailing drivers using its platform.
The judge awarded N1 million in legal costs in favor of FIRS against the Bolt operators.
The dispute began when Bolt operators approached the Tribunal to stop FIRS from enforcing VAT on services provided by independent vendors and drivers, arguing it was contrary to Section 10 of the VAT Act.
The judge affirmed the TAT’s judgment, stating that FIRS acted within the law in appointing Bolt as a VAT agent, and dismissed the appeal.