- The Nigerian Revenue Service (NRS) clarified that VAT on banking services is not new and has always applied under existing tax laws.
- VAT is charged only on bank service fees and commissions, not on the money being transferred or withdrawn.
- Interest on savings and fixed deposits, as well as basic food, essential goods, medical services, pharmaceuticals, and tuition fees, remain exempt from VAT.
- The recent change is in compliance and enforcement, not in the law itself; banks are being reminded to remit VAT already charged.
- NRS urged the public to rely on official sources for tax information and dismissed media claims of a new VAT as incorrect.
Source: saharareporters.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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