- Nigerian banks and fintechs are now required to charge and remit 7.5% VAT on service fees and commissions, effective January 19, 2026.
- The government clarified that this is not a new tax; VAT on banking service fees has long existed under Nigerian law.
- VAT applies only to service fees (e.g., transfer charges, USSD fees, card issuance, account maintenance), not to the funds transferred or interest earned on deposits.
- The move aims to strengthen the tax system, enhance transparency, and support national development.
- The NRS urged reliance on official sources for accurate tax information and rejected misleading media reports.
Source: vatabout.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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