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

 

 

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.