What You Need to Know About 7.5% VAT on Bank Charges Starting January 19

• Banks will begin deducting a 7.5% VAT on banking service fees (not on the transaction amount) from January 19, 2026.
• The VAT applies to service charges such as POS fees, mobile banking transfer fees, card issuance, SMS alerts, and account maintenance.
• The deducted VAT will be remitted to the Nigerian Revenue Service (NRS).
• This VAT on banking service fees is not new; it has always been part of Nigeria’s VAT regime and is not an additional tax.

Source: nigerianeye.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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