Nigeria: Guidelines for VAT on tolls, paid parking, parks and entertainment
Toll gates, paid parking, recreational parks, entertainment, and other related operations are subject to VAT
Toll gates, paid parking, recreational parks, entertainment, and other related operations
The Federal Inland Revenue Service issued guidance—Information Circular No. 2021/03—that addresses application of value added tax (VAT) on road tolls, paid parking, access pass, recreational or entertainment parks, admissions to events, and other related services.
The circular provides that toll gates, paid parking, recreational parks, entertainment, and other related operations—for which a fee is paid for access or use—are subject to VAT. Also, when these services are outsourced, VAT will apply on both the commission and fee charged by the operators.
The circular also outlines various business arrangements in relation to certain services and the rules when VAT applies. Operators of the services are required to issue tax invoices that clearly state the amount of the service fee and the amount of VAT charged.
Read an April 2021 report [PDF 166 KB] prepared by the KPMG member firm in Nigeria
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