The Nigerian Civil Aviation Authority (NCAA) has given Overland Airways a 10-day deadline to clarify its position on a retrospective Value Added Tax (VAT) dispute with the Nigeria Revenue Service (NRS).
The issue arose after complaints that passengers were charged VAT on tickets purchased in 2025 but for flights scheduled in 2026. One report highlighted that an elderly passenger was asked to pay an additional ₦11,286 in VAT under the new tax rules.
At a meeting with NCAA officials, Overland Airways argued that VAT should be applied based on the date of travel rather than the ticket purchase date. The airline also cited an alleged previous agreement with tax authorities supporting its approach.
However, the NCAA noted that any prior agreements may no longer apply under Nigeria’s new tax regime and requested formal clarification from the NRS regarding the application of VAT on such transactions. Overland Airways has been instructed to submit this clarification within 10 days.
If the NRS rules that retrospective VAT charges are invalid, Overland Airways may be required to refund affected passengers.
This dispute highlights broader consumer protection concerns as Nigeria implements its new tax framework, which took effect on January 1, 2026, consolidating several tax rules under the NRS. Visit www.jocomms.com for more news.