TAT LAGOS SETTLES CONTROVERSY ON THE SCOPE OF STOCK-IN-TRADE FOR THE CLAIM OF INPUT VAT – CHI LTD V. FEDERAL INLAND REVENUE SERVICE

In what may be regarded as a breakthrough for players in the manufacturing sector in Nigeria, the Tax Appeal Tribunal provided clear parameters for the determination of “Stock in Trade” by expanding its scope from the traditional limitation to raw materials, to all stock in trade directly associated with production, thus potentially reducing VAT (cash) to be remitted by relevant entities to the FIRS.On one hand, the decision could mean a substantial increase in tax saving, on the other, it may mean nothing to the taxpayer or be outrightly detrimental. The operation of either case is dependent on the nature of the company, its operation, and peculiarities.

LEAVE A REPLY

Please enter your comment!
Please enter your name here