ABUJA, July 25, 2025 – The Federal High Court in Abuja has granted the Federal Inland Revenue Service (FIRS) the legal backing to collect Value Added Tax (VAT) on food deliveries made through ride-hailing and logistics platforms, including Bolt Food.
In the ruling delivered on Wednesday, Justice N.E. Maha affirmed the statutory powers of the FIRS to impose and collect VAT on digital and electronic transactions, including those conducted via mobile delivery applications. The judgement followed a suit filed by FIRS against delivery platform operators over the legality of VAT charges on services offered through their platforms.
According to the court, the nature of services provided by Bolt and similar platforms fall under the taxable supplies outlined in the Value Added Tax Act as amended, especially as they involve commercial transactions and are not exempted by law.
The decision reinforces FIRS’ expanded authority under the Finance Act 2020 and subsequent amendments that introduced digital taxation provisions, making businesses operating within the digital economy liable for VAT collection and remittance.
Reacting to the judgment, officials from FIRS welcomed the ruling as a step forward in ensuring tax compliance in Nigeria’s rapidly growing digital commerce sector. The service emphasized that it would continue to engage with platform operators to ensure smooth and transparent VAT remittance processes, particularly on services like food delivery, courier, and e-commerce logistics.
Bolt Food, a subsidiary of the ride-hailing service Bolt, is expected to comply with the new directive by charging VAT on its food delivery services and remitting same to the FIRS.
Industry experts have noted that the ruling could set a precedent for other digital service platforms and reshape how consumers are billed for everyday digital transactions, particularly in Nigeria’s evolving tax landscape.
