NRS clarifies VAT on bank transactions, says no new tax introduced

By Emma Ujah, Abuja Bureau Chief

ABUJA — The Nigeria Revenue Service (NRS) has clarified that there has been no new imposition of Value-Added Tax (VAT) on banking services, dismissing claims circulating in some media outlets.

In a statement released on Thursday, the NRS explained that VAT has always applied to fees, commissions, and charges for services rendered by banks and other financial institutions, and the Nigeria Tax Act did not introduce any new tax obligation on customers.

The statement, signed by Dare Adekanmbi, Special Adviser on Media to NRS Chairman Zacch Adedeji, said: “The Nigeria Revenue Service (NRS) wishes to correct misleading narratives suggesting that 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 NRS further urged the public to disregard misinformation and rely solely on official communications for accurate tax information.

According to the Service, VAT continues to apply to commissions, fees, and charges for services such as transfer fees, USSD charges, card issuance fees, account maintenance fees, and similar banking services. This has been the case under Nigerian VAT law and remains unchanged.

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