- Clarifies VAT charges under tax reform law
The Nigeria Revenue Service (NRS) has described as incorrect and misleading reports making the rounds on the imposition of Value-Added Tax (VAT) on banking services, including electronic money transfer, fees and commission.
According to the NRS, contrary to misinformation being peddled in public space, VAT has always applied to banking services and not newly introduced under the new Nigeria Tax Act.
A statement signed by Dare Adekanmbi, Special Adviser on Media to the NRS chairman, Zacch Adedeji, explained that “The Nigeria Tax Act did not introduce VAT on banking charges, nor did it impose any new tax obligation on customers in this regard.”
Consequently, the statement urged all stakeholders and members of the public to disregard misinformation and to rely exclusively on official communications for accurate, authoritative, and up-to-date tax information.
The statement read thus: “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 to rely exclusively on official communications for accurate, authoritative, and up-to-date tax information.”
Meanwhile, the NRS also conveyed in its public statement a list of Frequently Asked Questions (FAQs) on VAT as it relates to the tax law as part of efforts to provide further clarity on other areas of concern to Nigerian taxpayers and all stakeholders in the sector.
