Section 13 of the Value Added Tax Act, CAP V1, LFN 2004 , states that
Further to the provisions of the VAT Act, FIRS issued Information Circular No. 02/2007 – Notification of Guidelines on the Implementation of VAT Deduction and New Payment Arrangement with Respect to Fees, Levies, and other Charges Payable by Companies in Oil and Gas Industry. The Service observed that some companies are not complying with the notice to withhold and remit VAT. Consequently, the FIRS hereby clarifies as follows:
“Companies operating in the oil & gas sector” include all companies engaged in upstream operations, downstream operations, Refineries oil serving companies and any other business operation in the upstream, mid-stream or downstream oil & gas sector.
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