Court Affirms FIRS Authority to Collect VAT from Bolt Drivers and Vendors

The Federal High Court sitting in Lagos has upheld the decision of the Tax Appeal Tribunal affirming 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 through platforms like Bolt.

Delivering judgment, Justice Akintayo Aluko dismissed the suit filed by Bolt operators, who had sought to restrain the FIRS from imposing VAT on services rendered by independent drivers and vendors. The operators argued that the VAT imposition violated Section 10 of the VAT Act. However, the court ruled in favour of FIRS, stressing the agency’s statutory mandate to administer VAT on such services.

Justice Aluko also awarded N1 million as the cost of the action in favour of FIRS against the Bolt operators.