NRS Denies New VAT on Banking Services, Clarifies Existing Tax Applies Only to Service Charges

• The Nigeria Revenue Service (NRS) clarified that VAT on banking services is not new and has always applied to fees, commissions, and charges.
• No new VAT obligation has been introduced on bank customers; misinformation in the media has caused confusion.
• VAT is charged only on service fees or commissions, not on the amount transferred or withdrawn.
• Interest earned on savings and deposits is not subject to VAT, and essential goods and services remain VAT-exempt.
• The NRS emphasized increased compliance and enforcement, urging the public to rely on official sources for tax information.

Source: von.gov.ng

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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