- The Nigeria Revenue Service (NRS) clarified that VAT on banking services, including electronic transfers, fees, and commissions, is not new and has always existed under Nigerian law.
- The NRS emphasized that the Nigeria Tax Act did not introduce any new VAT or tax obligations on banking charges for customers.
- VAT is only applied to service charges or commissions by banks, not on the amount of money transferred or withdrawn.
- Interest earned on savings and deposit accounts is not subject to VAT.
- Basic food items, essential goods, medical services, pharmaceutical products, and core educational services are exempt from VAT under the Nigeria Tax Act.
Source: peoplesdailyng.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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