Court Affirms FIRS Right to Collect VAT On Food Deliveries Through Bolt

The Federal High Court in Lagos has upheld a ruling that affirms the Federal Inland Revenue Service’s authority to charge, collect and remit Value Added Tax on transportation and food services provided by independent operators using digital platforms such as Bolt. Justice Akintayo Aluko dismissed the appeal filed by Bolt operators and awarded costs of ₦1 million in favour of FIRS.

The dispute began when the Bolt operators approached the Tax Appeal Tribunal, arguing that their appointment by FIRS as VAT agents for independent service providers contravened Section 10 of the VAT Act. The Tribunal dismissed their case in May 2023, prompting them to appeal to the High Court.

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In court, the appellants argued that Bolt itself is not a transportation or food service provider and therefore should not be classified as a taxable supplier. They also questioned the legal basis of their appointment as VAT agents and challenged the validity of FIRS’s guidelines. However, FIRS countered that the claims were speculative and unsupported by law.

Justice Aluko found that FIRS acted within the law in making the appointments under Section 10(3) of the VAT Act. He upheld three of the six issues raised in favour of FIRS, struck out two, and ruled one in favour of the appellants. The court concluded there was no valid reason to overturn the Tribunal’s earlier judgment.