VAT on Banking Fees Not New, NRS Tells Nigerians

The Nigeria Revenue Service (NRS) has refuted reports suggesting that Value Added Tax (VAT) has been newly imposed on banking services, fees, commissions, or electronic money transfers, describing such claims as misleading.

In a press statement issued on Thursday, the revenue authority said the narrative circulating in parts of the media was “categorically incorrect,” stressing that the existing tax framework already covers banking-related service charges.

According to the NRS, “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 agency emphasised that the Nigeria Tax Act did not introduce VAT on banking charges and did not create any new tax obligation for customers.

The Service further clarified that claims linking recent public concerns to changes in tax law were unfounded, noting 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.”

Urging caution, the NRS called on the public and stakeholders to ignore unverified reports and rely on official sources for accurate tax information.

It said Nigerians should “disregard misinformation and rely exclusively on official communications for accurate, authoritative, and up-to-date tax information.”