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Specific VAT rules

Land and buildings

Bad debts

Where a registered person has claimed an input tax credit, and the person’s debt towards the supplier is written off as irrecoverable, the registered person will be required to make an adjustment for input tax over-claimed in the past.

The supply of land and buildings is not exempted from VAT. The FIRS would therefore demand output tax in this respect, which should be accounted for in the normal manner. Input tax in line with normal rules is capitalised as part of the cost of the asset.

Where a registered person has made a taxable supply, accounted for the output tax and has subsequently written off the whole portion of the debt as irrecoverable, the relevant adjustments should be made to the VAT return for the period concerned.

Although not specifically provided for in the VAT legislation, where a registered person subsequently recovers all or a portion of the debt which was previously written off, output tax should be paid in respect of the VAT portion of the amount recovered in the relevant tax period.

Other indirect taxes

Customs duties

Customs duties are payable on imported goods at the rate of duty shown in the customs duty tariff classification for the applicable year. The tariff under the Customs Act ranges from 0% to 150%. Duties on imported goods are levied on the cost, insurance and freight (CIF) value of the imported good.

Nigeria is moving towards the adoption of the Common External Tariff (CET) for Economic Communities of West

Contact details – PricewaterhouseCoopers, Nigeria

Website: www.pwc.com/ng

Physical address

Postal address

232E Muri Okunola Street Victoria Island

Lagos Nigeria

PO Box 2419 Lagos Nigeria

PwC contact persons


Ken Aitken

Head of Tax

Russell Eastaugh

Tax Director

Taiwo Oyedele

Tax Director

African States (ECOWAS). The tariff under the CET ranges from 2% to 20%.

Stamp duty

Stamp duties are payable on relevant documents at prescribed rates. Stamp duties may be at a flat rate (specific) or based on a percentage of the values of the applicable transactions (ad valorem).

Stamp duty rates range between 1% and 6%, where it is charged ad valorem. Leasehold agreements or rent agreements generally attract the highest rate of 6%. Fixed rates are in the range of N100 to N1,000 (about US$1 to US$10).

Telephone numbers



+234(1)2711700 - 29 +234(1)2703101 - 4 +234(1)2703111 - 20 +234(1)2703108 +234(1)2703109

Contact details

ken.aitken@ng.pwc.com russell.eastaugh@ng.pwc.com taiwo.oyedele@ng.pwc.com

PricewaterhouseCoopers 125

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