The Nigeria Revenue Service (NRS) has clarified that value-added tax (VAT) on bank service charges was not introduced by the Nigeria Tax Act (NTA), 2025.
Gatekeepers News reports that the clarification follows announcements by banks that they would begin deducting 7.5 percent VAT on banking services—including POS transaction fees and mobile banking transfers—from January 19.
In a statement on Thursday, the NRS said the VAT on banking services is not a new policy, noting that it has always applied to fees, commissions, and charges for services rendered by banks and other financial institutions under Nigeria’s VAT framework.
“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 NRS urged the public and stakeholders to disregard misinformation and rely solely on official communications for accurate and up-to-date tax information.
