Abuja, Jan. 15, 2026 (NAN) The Nigeria Income Service (NRS) has dispelled information going rounds on the imposition of Worth-Added Tax (VAT) on banking providers, together with digital cash switch, charges and fee.
Mr Dare Adekanmbi, Particular Adviser on Media to Dr Zacch Adedeji, the Government Chairman of NRS, stated this in an announcement in Abuja on Thursday, describing the stories as incorrect and deceptive.
Adeknambi stated that VAT had all the time utilized to banking providers, including that it was not newly launched below the brand new tax legislation, the Nigeria Tax Act.
In line with him, the Nigeria Tax Act didn’t introduce VAT on banking expenses, nor did it impose any new tax obligation on prospects on this regard.
“The Nigeria Income Service (NRS) needs to deal with and proper deceptive narratives circulating in sections of the media suggesting that VAT has been newly launched on banking providers, charges, commissions, or digital cash transfers.
“This declare is categorically incorrect.
“VAT has all the time utilized to charges, commissions, and expenses for providers rendered by banks and different monetary establishments below Nigeria’s long-established VAT regime.
“The Nigeria Tax Act didn’t introduce VAT on banking expenses, nor did it impose any new tax obligation on prospects on this regard,” he stated.
He urged members of the general public and all stakeholders to ignore misinformation and to rely solely on official communications for correct, authoritative, and up-to-date tax data.
The assertion additionally included a listing of Often Requested Questions (FAQs) on VAT because it pertains to the tax legislation as a way to present additional readability on different areas of concern to Nigerians.
In the meantime, in addressing some often requested questions, Adekanmbi stated that VAT utilized to commissions, charges, and expenses for providers rendered by banks and different monetary establishments.
He listed such providers to incorporate switch charges, USSD expenses, card issuance charges, account upkeep charges, and comparable service expenses.
In line with him, this has all the time been the place below Nigerian VAT legislation, and was not launched by the Nigeria Tax Act.
He stated that VAT was not charged on the sum of money transferred or withdrawn.
“It applies solely to the service cost or fee imposed by the financial institution.
“For instance, if a financial institution expenses N10 for a switch, VAT of seven.5 per cent (N0.75) applies to that N10 cost, to not the quantity being transferred,” he stated.
He stated that curiosity earned on financial savings accounts, fastened deposits, and comparable deposit accounts was not subjected to VAT.
He stated that curiosity revenue was not a provide of products or providers and due to this fact didn’t appeal to VAT below the Nigeria Tax Act, 2025 .
He additionally stated that the Nigeria Tax Act expressly exempted fundamental meals gadgets and important items from VAT as a way to shield customers and cut back the price of residing.
“These exemptions are clearly listed below the VAT exemption provisions of the Act .
“Important medical providers and pharmaceutical merchandise are VAT-exempt below the Nigeria Tax Act, according to longstanding coverage to make sure entry to healthcare.
“Tuition and core academic providers offered by recognised academic establishments are exempt from VAT below the Act,” he stated.
In line with him, what has modified is compliance and enforcement, not the legislation.
“Monetary establishments are being reminded of their present obligation to remit VAT already charged and picked up from prospects, in step with the Nigeria Tax Act.
“The Act didn’t introduce VAT on financial savings, fundamental meals, medical care, training, or important consumption.
“Claims suggesting in any other case are deceptive and incorrect,” he stated.(NAN) (www.nannews.ng)
Edited by Deji Abdulwahab
