The Nigeria Revenue Service (NRS) has cleared the air over reports suggesting that Value-Added Tax (VAT) has been newly imposed on banking services such as electronic transfers, fees and commissions.
In a statement made available to newsmen and signed by Dare Adekanmbi, Special Adviser on Media to the NRS chairman, Zacch Adedeji, the service said the claims are incorrect.
According to the NRS, VAT has always applied to banking services and was not introduced by the Nigeria Tax Act.
The statement explained that “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 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.
“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.”
While urging Nigerians to ignore false reports, the NRS said, “The Nigeria Revenue Service urges members of the public and all stakeholders to disregard misinformation and to rely exclusively on official communications for accurate, authoritative, and up-to-date tax information.”
The NRS also clarified that VAT applies only where banks charge fees or commissions for services such as transfers, USSD usage, card issuance and account maintenance.
It stressed that VAT is not charged on the actual amount transferred or withdrawn, but only on the service charge.
The Service also noted that interest earned on savings accounts and fixed deposits does not attract VAT, as it is not considered a supply of goods or services under the Nigeria Tax Act, 2025.
According to the NRS, basic food items, essential goods, medical and pharmaceutical products, as well as educational services, remain exempt from VAT under the law.
It explained that recent concerns are linked to improved compliance and enforcement, not the introduction of new taxes, adding that financial institutions are being reminded to remit VAT already charged and collected.
The NRS maintained that the Nigeria Tax Act did not introduce any new VAT burden on ordinary Nigerians, especially in areas such as savings, food, healthcare, education and essential consumption.
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