The Nigeria Revenue Service (NRS) has clarified that the Nigerian Tax Act did not introduce a new Value Added Tax (VAT) on banking charges, countering reports suggesting that customers are now being taxed on bank services and electronic transfers.
In a statement issued on Thursday, the NRS explained that VAT has always applied to fees, commissions, and charges for services provided by banks and other financial institutions under Nigeria’s long-standing VAT system.
It emphasised that the Nigerian Tax Act did not alter this arrangement or impose any additional tax burden on bank customers.
The agency described claims of a newly introduced VAT on banking services as misleading and incorrect, noting that no fresh tax obligation has been created in relation to banking fees.
The NRS urged members of the public and stakeholders to ignore misinformation and rely on official communications for accurate and up-to-date information on tax matters.
The statement reads, “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.
“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 Nigeria Tax Act did not introduce VAT on banking charges, nor did it impose any new tax obligation on customers in this regard.
“The Nigeria Revenue Service urges members of the public and all stakeholders to disregard misinformation and rely exclusively on official communications for accurate, authoritative, and up-to-date tax information.”