January 15, (THEWILL) — The Nigeria Revenue Service (NRS) has clarified that Value Added Tax (VAT) on banking fees and related service charges is not a new development.
The agency dismissed reports suggesting that the Nigeria Tax Act 2025 recently introduced these charges on banking services and electronic money transfers.
In a statement issued on Thursday, January 15, 2026, the NRS described such claims as misleading. The revenue authority noted that VAT has always applied to fees, commissions, and charges for services rendered by financial institutions under Nigeria’s long-established tax regime.
The agency emphasized that the new legislation does not impose fresh tax obligations on bank customers but rather standardizes the existing framework.
According to the service, VAT has always applied to fees and commissions for services rendered by banks and other financial institutions. The Nigeria Tax Act did not introduce VAT on banking charges.
The NRS explained that while the tax itself is not new, it is enforcing uniform collection and remittance across all platforms, including fintechs, to close revenue gaps and align with the Nigeria Tax Act 2025.
Misconceptions have recently spiked following notices from fintech firms like Moniepoint, which informed customers that they would begin collecting 7.5% VAT on electronic banking charges—such as mobile transfers and USSD session fees—starting Monday, January 19, 2026.
The NRS clarified that VAT applies only to service fees, such as the ₦10 or ₦25 charged for a transfer, and not to the actual amount being sent.
The agency further noted that exemptions remain in place for interest earned on savings, deposits, and loans.
Additionally, the Stamp Duty (formerly EMTL) of ₦50 on transfers of ₦10,000 and above remains a separate, one-off charge now paid by the sender as of January 1, 2026.
The NRS urged the public and the media to disregard misinformation and rely on official communications from the agency, which officially replaced the Federal Inland Revenue Service (FIRS) this year.
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