The Nigeria Revenue Service (NRS) has issued a formal clarification to correct widespread misinformation regarding the application of Value-Added Tax (VAT) on banking services. The Service emphasized that there has been no fresh imposition of taxes on bank customers under the new Nigeria Tax Act.
In a statement released by Dare Adekanmbi, Special Adviser on Media to the NRS Chairman, Dr. Zacch Adedeji, the Service addressed “misleading narratives” suggesting that VAT on electronic transfers and banking fees is a new development.
The NRS explicitly stated that VAT has long been an integrated component of Nigeria’s financial regulatory framework.
Key clarifications include:
Existing Policy, Not New Legislation: VAT has always applied to the fees, commissions, and service charges rendered by banks and financial institutions. The Nigeria Tax Act does not create any new tax obligations for customers in this category.
What is Taxed: VAT applies only to the service fees charged by banks such as transfer fees, USSD charges, card issuance fees, and account maintenance fees.
What is NOT Taxed: The NRS reaffirmed that the actual money being transferred by customers is not subject to VAT.
“The Nigeria Revenue Service wishes to address and correct misleading narratives circulating in sections of the media,” the statement read. “This claim is categorically incorrect. VAT has always applied to fees, commissions, and charges for services rendered by banks under Nigeria’s long established VAT regime.
The NRS Chairman urged the public and all financial stakeholders to disregard false reports and rely solely on official government channels for authoritative tax information. The Service remains committed to transparency and the accurate implementation of the Nigeria Tax Act to support national economic stability.
