Federal Government has reaffirmed that all lawyers and law firms are legally required to remit the 7.5 per cent Value Added Tax (VAT) to the Federal Inland Revenue Service (FIRS), in line with the provisions of the new tax reform law scheduled to take effect on January 1, 2026.

Particularly, the government argued that legal practitioners offer professional services that fall within the taxable category.

It also clarified that traders, military officers, workers earning less than N800,000 per year, and small businesses with a turnover of N100 million or less are exempt. Additionally, it stated that if VAT was incorrectly charged to anyone in the exempt group, they could apply for a refund within 30 days.

Chairman FIRS, Zack Adedeji, stated this yesterday while addressing legal scholars at the 56th yearly national conference of the Nigerian Association of Law Teachers (NALT) at the University of Abuja.

Represented by Head of the Tax, Policy Reform Analysis Unit, Fiscal and Tax Reform Division of the Service, Bright Igbinosa, the agency boss emphasised that the aim of the new tax reform was not to burden professionals, but to ensure fairness, transparency, and compliance in Nigeria’s tax system.

He noted that the reforms were part of the government’s broader efforts to expand the tax base, reduce tax evasion, and enhance revenue generation for national development.

Adedeji further explained that the new law gives the FIRS the authority to appoint third parties to recover taxes from defaulters residing outside the country.

The FIRS chairman made his remarks in response to protests from some participants at the plenary session, who challenged the reasoning behind requiring young lawyers to remit VAT.

He specifically noted that the government could not put professionals and traders in the same tax bracket because professionals could have ‘enormous’ profit margins compared to traders.

“The keynote speaker further explained that the FIRS will continue to engage with professional bodies, including the Nigerian Bar Association (NBA), Nigerian Association of Law Teachers (NALT) to ensure a smooth implementation of the law and to address any concerns raised by stakeholders before the January 2026 rollout.

He urged all legal practitioners to register with the FIRS, file their VAT returns promptly, and remit the tax collected, stressing that non-compliance would attract penalties as provided by law.

In his intervention, the Dean, Faculty of Law, University of Lagos (UNILAG), Prof. Abiola Sanni, SAN, urged state governments to prioritise tax reforms as well, describing the four new tax reform laws as a landmark development in the country’s history.