VAT on bank charges NOT introduced by new tax laws – NRS

The Nigeria Revenue Service (NRS) says value-added tax (VAT) on bank services charges was not introduced by the new tax laws under the Nigeria Tax Act (NTA), 2025.

Banks had announced plans to begin deducting the 7.5 percent VAT on banking services, including point of sale (POS) transaction fees and mobile banking transfer charges, from January 19.

In a statement on Thursday, the NRS clarified that the VAT is not a new policy, saying it has always applied to fees, commissions, and charges for services rendered by banks and other financial institutions under Nigeria’s VAT regime.

“The Nigeria Revenue Service (NRS) wishes to address and correct misleading narratives circulating in sections of the media suggesting that value added tax (VAT) has been newly introduced on banking services, fees, commissions, or electronic money transfers. This claim is categorically incorrect,” the statement reads.

“VAT has always applied to fees, commissions, and charges for services rendered by banks and other financial institutions under Nigeria’s long-established VAT regime.

“The Nigeria Tax Act did not introduce VAT on banking charges, nor did it impose any new tax obligation on customers in this regard.”

The tax authority asked members of the public and stakeholders to disregard misinformation and rely solely on official communications for accurate and up-to-date tax information.(The Cable)