The Nigeria Revenue Service (NRS) has rejected claims that the Nigeria Tax Act introduced Value Added Tax on banking fees, describing the narrative as inaccurate and misleading.
In a statement issued on Thursday, the agency clarified that VAT was not newly imposed on banking services, electronic money transfers, or related charges under the Nigeria Tax Act. According to the NRS, VAT has long applied to fees, commissions, and charges for services rendered by banks and other financial institutions under Nigeria’s existing VAT framework.
The Service stressed that the recent tax legislation did not create any additional tax burden for bank customers, nor did it expand the scope of VAT on banking transactions. It noted that suggestions of a new VAT regime targeting banking fees misrepresent both the intent and the provisions of the law.
The NRS said the clarification became necessary following widespread reports in sections of the media suggesting that VAT had been newly introduced on banking services. It described such reports as categorically incorrect and capable of creating unnecessary confusion among the public.
Reaffirming its position, the agency urged the public and stakeholders to disregard unverified information and rely solely on official communications for accurate and up to date guidance on tax matters.
Reiterating this claim, Taiwo Oyedele on X (formerly Twitter) VAT (value Added Tax) has been on since 1993.
“There is NO VAT on the money you transfer. VAT is only charged on the banking fee or commission which has been the case since VAT was introduced in 1993.” he tweeted.
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