Tax agency says Nigeria Tax Act 2025 did not introduce fresh VAT on POS, transfer or banking service fees
The Nigeria Revenue Service (NRS) has dismissed claims that the Nigeria Tax Act (NTA) 2025 introduced a new value-added tax (VAT) on banking services, clarifying that VAT has long applied to bank charges under existing tax laws.
The clarification follows announcements by several banks indicating plans to begin deducting 7.5 per cent VAT on certain banking services, including point-of-sale (POS) transaction fees and mobile transfer charges, effective January 19.
In a statement issued on Thursday, the NRS said the reports suggesting that VAT on banking services was newly introduced under the 2025 tax law are misleading and inaccurate.
“The Nigeria Revenue Service wishes to address and correct misleading narratives circulating in sections of the media suggesting that VAT has been newly introduced on banking services, fees, commissions or electronic money transfers,” the statement said.
According to the agency, VAT has always applied to fees, commissions and service charges imposed by banks and other financial institutions under Nigeria’s long-established VAT framework.
“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 NRS stated.
The tax authority explained that what is currently being implemented by banks is a continuation of existing VAT provisions, not a result of the newly enacted tax legislation.
The NRS urged members of the public, businesses and other stakeholders to disregard misinformation and rely only on official communications for accurate and up-to-date tax guidance.
It added that the service remains committed to transparency and will continue to engage the public to clarify issues relating to tax policy and administration.
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