The Nigeria Revenue Service (NRS) has clarified that Value-Added Tax (VAT) has always applied to banking services, including electronic money transfer fees and commissions. This is not a new tax introduced under the new tax law, but rather a clarification of existing rules. The NRS in a statement signed by Special Adviser on media,Dare Adekanbi on behalf of the chairman Zach Adedeji urged  the public to disregard misinformation and rely on official communications for accurate information.

According to the NRS, VAT applies to fees, commissions, and charges for services rendered by banks and other financial institutions, such as transfer fees, USSD charges, and account maintenance fees. However, VAT is not charged on the amount of money transferred or withdrawn, only on the service charge or commission imposed by the bank.

The NRS emphasized that the recent change is in compliance and enforcement, not the law itself. Financial institutions are being reminded of their existing obligation to remit VAT already charged and collected from customers. The NRS assures Nigerians that the tax law has not introduced any new VAT burden on ordinary citizens, and claims suggesting otherwise are misleading and incorrect.

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