NRS Debunks Claims of New VAT on Banking Charges

The Nigeria Revenue Service (NRS) has dismissed reports suggesting that Value Added Tax (VAT) was newly introduced on banking services, fees, and electronic money transfers under the Nigeria Tax Act.

In a statement issued on its official X handle on Thursday, the NRS described the claims as misleading and categorically incorrect, stressing that no new tax burden has been imposed on bank customers.

According to the Service, 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. It clarified that the Nigeria Tax Act did not introduce VAT on banking charges, nor did it impose any fresh tax obligation on customers in this regard.

“The Nigeria Tax Act did not introduce VAT on banking charges,” the statement read, adding that suggestions to the contrary were based on misinformation circulating in sections of the media.

The NRS urged members of the public, businesses, and other stakeholders to disregard unverified narratives and rely solely on official communications for accurate, authoritative, and up-to-date tax information.

The clarification comes amid growing public debate and concern over tax reforms and bank charges, with the NRS reiterating its commitment to transparency and public enlightenment on fiscal policies.