The Nigeria Revenue Service (NRS) has dismissed reports suggesting that Value Added Tax (VAT) has been newly imposed on banking services, electronic money transfers, fees and commissions, describing the claims as incorrect and misleading.
The NRS clarified in a statement that VAT has always applied to banking services under Nigeria’s existing tax regime and was not introduced by the new Nigeria Tax Act.
The statement, signed by Dare Adekanmbi, Special Adviser on Media to the NRS Chairman, Zacch Adedeji, said the Act did not create any new VAT obligations for bank customers.
“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 statement said.
It explained that fees, commissions and charges for services rendered by banks and other financial institutions have long been subject to VAT under established tax laws, contrary to claims circulating in sections of the media.
The NRS urged the public and stakeholders to disregard misinformation and rely on official communications for accurate and up-to-date tax information.
The statement also included a list of frequently asked questions on VAT under the new tax law to provide further clarity on areas of public concern.
