The Tax Appeal Tribunal (TAT or “the Tribunal”) sitting in Benin on 9 September 2020 decided in the case between Chief J.W. Ellah, Sons & Company Limited (CESCL or “the Appellant”) and Federal Inland Revenue Service (FIRS or “the Respondent”) that rental income derived from the lease of commercial properties is liable to VAT, to the extent that it is not exempted from the First Schedule to the Value Added Tax (VAT) Act. The judgment directly conflicts with the judgement of the TAT Lagos Zone delivered a day later on 10 September 2020 in Ess-Ay Holdings Limited and Federal Inland Revenue Service where the TAT held that rental income derived from lease of real estate properties, whether for residential or commercial purpose, is not subject to VAT.
Source: proshareng.com
