VAT on Bank Charges Not New, NRS Clarifies; Applies Only to Service Fees, Not Transfers

• VAT has always applied to banking services, including fees, commissions, and charges, and is not a new tax under the Nigeria Tax Act.
• The Nigeria Revenue Service (NRS) clarified that no new VAT has been introduced on banking transactions or electronic money transfers.
• VAT is charged only on service fees or commissions by banks, not on the amount transferred or withdrawn.
• Interest earned on savings or deposit accounts is not subject to VAT.
• The NRS urges the public to disregard misinformation and rely on official sources for accurate tax information.

Source: premiumtimesng.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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