Bolt appeals court ruling authorising FIRS to tax its ride and food delivery services

E-mobility company Bolt has filed an appeal at the Lagos Court of Appeal to challenge a High Court judgment that authorised FIRS to collect VAT on transport and food services provided by its drivers and food vendors. The development is the latest twist by Bolt to overturn the tax collector’s authority.

In the appeal, as cited by Punch News, Bolt questioned the stance of fair hearing and the Federal Inland Revenue Service (FIRS) action to place 5% value-added tax (VAT) on suppliers who fall below the N25 million threshold. The appeal also seeks to overturn the June 24, 2025, decision of the Lagos High Court that affirmed FIRS’s authority to appoint Bolt as VAT agent under Section 10(3) of the VAT Act.

The court judgment, delivered by Justice Akintayo Aluko, affirmed a previous ruling by the Tax Appeal Tribunal (TAT) that gave the FIRS’ legal backing to place 5% VAT on food and transport services providers. This applies to independent ride-hailers and vendors via Bolt digital platforms.

In the new appeal, the company’s lawyer, Mr Elvis Asia, restated that the claims are simply a misinterpretation of the law. He argued that the court misguided itself by interpreting Section 10(3) and (6) as a universal policy to appoint agents for domestic supplies.

According to Bolt, upholding the judgment means placing tax on innocent Nigerians, as its drivers and vendors are independent agents. The company also argued that it doesn’t have a physical presence in Nigeria and is not a direct provider of transportation or food services. 

“Section 10, when read holistically, confines the power to appoint a person to withhold and remit VAT to transactions involving non-resident suppliers. The supplies in question were made by Nigerian resident suppliers, namely drivers and food vendors,” the company said. 

Also in the appeal, Bolt is challenging the court judgment’s reliance on the 2021 Guidelines on Simplified Compliance Regime for VAT for Non-Resident Suppliers. It argued that the laws were wrongly applied to domestic transactions and challenged the N1 million awarded against it. 

While the Court of Appeal is yet to fix a date for the hearing, the development is the latest twist in the Bolt vs FIRS’ VAT dispute that dates back to 2022. 

Earlier High Court’s judgment 

In a ruling delivered by Justice Akintayo Aluko in June 2025, the Lagos High Court resolved most of the issues in favour of FIRS. The court noted that the FIRS acted within the law when it appointed Bolt as a collection agent under Section 10(3) of the VAT Act.

Also, it upheld the TAT’s ruling authorised the tax collector’s decision to place VAT on food and transport services provided by independent ride-hailers and vendors. 

“There is no valid reason to disturb the judgment of the Tribunal. Consequently, the judgment of the Tribunal delivered on 26th May 2023 is affirmed,” the judge said, adding that the appeal failed and was accordingly dismissed.

Read More: Court affirms FIRS’ authority to levy VAT on Bolt’s ride-hailing and food vendor services.

In its first fight for justice, Bolt filed suit No. TAT/LZ/VAT/074/2022 at the Tribunal in 2022, demanding an order that restrains the FIRS from imposing VAT on various services rendered via the platform. The company also claimed that it should not be classified as a supplier due to its non-resident digital intermediary.

Bolt noted that the drivers who make use of its platform are not its employees but rather independent providers of cab services, and Bolt does not own any of the cars used by the drivers.

However, the case was dismissed by the TAT in May 2023, prompting the operators to challenge the decision at the Lagos Federal High Court afterwards.

What you should know about the FIRS 5% VAT

In 2019, the FIRS added a 5% VAT on online transactions, which systematically affected businesses operating in Nigeria’s internet space. The move, according to the tax authority, was backed by the late Muhammadu Buhari’s administration to rake in revenue. 

The VAT directive affected tech companies, foreign shipping websites, online ticketing platforms, video streaming platforms, and logistics operators. The likes of Bolt, Jumia, GOKADA, Uber and Konga were affected. 

The FIRS stated then that it doesn’t matter if the item has already been ‘vatted’ in its originating country. In its argument, once a business is operating in Nigeria, it’s liable to pay the 5% VAT. 

However, Bolt challenged the policy, arguing that it doesn’t have a physical presence in Nigeria and its drivers and vendors are independent agents.