Nigeria Federal High Court Rules VAT Unconstitutional for Hotels, Restaurants, Event Centers

The Nigerian Federal High Court Oct. 3, 2019, ruled that it is unconstitutional to apply VAT to hotels, restaurants, and event centers. Trustees for the Hotel Owners and Managers Association challenged the Lagos state government’s right to impose the Hotel Occupancy and Restaurant Consumption Act, arguing VAT already taxes goods and services related to hotels and restaurants. The court held that: 1) the provisions of the VAT Act that are related to hotels, restaurants, and event centers are unconstitutional, and therefore those measures are void; 2) consumption taxes are not a federal issue; 3) the Lagos state government has the ...