The Nigeria Revenue Service (NRS) has dismissed widespread claims suggesting that the Nigeria Tax Act recently introduced Value Added Tax (VAT) on banking services, describing such reports as misleading and inaccurate.
In a statement issued on Thursday, the tax authority said VAT has not been newly imposed on banking fees, commissions, or electronic money transfers, contrary to narratives circulating in sections of the media.
> “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.”
According to the NRS, VAT has long applied to charges for services rendered by banks and other financial institutions under Nigeria’s existing tax framework, stressing that the current law did not create any fresh tax burden for bank customers.
> “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 Service further clarified that the Nigeria Tax Act neither introduced VAT on banking charges nor altered customers’ obligations in that regard.
> “The Nigeria Tax Act did not introduce VAT on banking charges, nor did it impose any new tax obligation on customers in this regard.”