The government-approved Amalgamated Union of App-Based Transport Workers of Nigeria (AUATON) has demanded a refund of the deduction of 7.5 per cent service payment VAT allegedly made by inDrive across all trips from January 1, 2026.

The group noted that one invoice showed inDrive’s deduction, as of January 1, 2026, from a driver’s trip as 4.99 per cent for service fee, VAT of 7.5 per cent for service payment, and VAT of 7.5 per cent (service VAT), culminating in 20 per cent deductions.

In another invoice, inDrive charges as of January 8, 2026, showed a service fee of 4.99 per cent and VAT of 7.5 per cent for service VAT, with a total deduction of 12.5 per cent.

AUATON National Ex-officio, Comrade Jossy Adaraniwon, noted in a statement that their investigation, based on the two invoices, indicated that Indriver’s deduction, which includes service payment and VAT, is now 12.5 per cent as against 20 per cent on January 1, 2026.

By implication, the inDrive ride-hailing management has made an unlawful and fraudulent deduction of 7.5 per cent, earlier named service payment VAT, from drivers across Nigeria, and the union said it would investigate the number of days this deduction was made and request an immediate refund of the 7.5 per cent, as well as 4.99 per cent compensation, back to all driver accounts.

Otherwise, it said it would prepare legal action against Indriver for what it described as a dubious corporate violation of trust and data manipulation in respect of VAT tax.

“As a union, we cannot fold our hands and allow a continuous violation of our members’ financial rights.

“Our recent publications exposed these inappropriate and fraudulent deductions, and for this reason, they have decided to make a sharp amendment by deleting the service payment VAT but have refused to make a refund of the 7.5 per cent illegally deducted from all drivers within this period.

“This is a time for action and accountability, and we are calling on the tax authority, the Federal Inland Revenue Service (FIRS), to proceed immediately with an investigation against the Indriver app, as its unjustified service payment VAT affects app-based transporters’ earnings and, by extension, the confidence of our members in VAT administration.

“AUATON rejects any discriminatory VAT regime that targets app-based drivers alone while exempting other transport operators. We call on tax authorities to suspend the policy and engage meaningfully with drivers’ representatives and app companies to better understand the sector,” he added.