Nigeria Revenue Service Denies New VAT on Banking Transactions, Clarifies Existing Tax Rules

• The Nigeria Revenue Service (NRS) denied reports of a new VAT on banking transactions, calling them false and misleading.
• VAT has always applied to bank service charges, fees, and commissions, not to the actual funds transferred or withdrawn.
• No new tax has been introduced; the law remains unchanged, with recent actions focused on enforcement and compliance.
• Interest on savings and deposits, as well as essential items and services like food, medicine, and education, remain VAT-exempt.
• The NRS urged the public to rely on official information and released FAQs to clarify how VAT applies to banking services.

Source: pointblanknews.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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