Tax authorities are shutting down rumors about some new bank charges. The Nigeria Revenue Service called reports of freshly imposed VAT on banking services completely incorrect. Officials stated VAT has always applied to fees and commissions for financial services under existing law. A media adviser clarified the recent tax act did not introduce any new obligation for customers.
The service urged the public to ignore misleading narratives circulating online. They emphasized relying solely on official communications for accurate tax information. Provided clarifications specify that VAT applies only to service charges like transfer fees or card issuance costs. The tax does not touch the actual money being moved or withdrawn from accounts.
Interest earned on savings or deposits remains exempt from value-added tax. Basic food items, essential medical products, and educational services are also not subject to VAT. Officials explained the change involves enhanced compliance enforcement, not new legislation. The act did not introduce additional burdens on everyday essentials for citizens.
Financial institutions are being reminded to properly remit already collected VAT. The position on taxing bank service charges has reportedly existed for years. This enforcement push aims to correct widespread misunderstanding about the law's scope. The statement effectively denies any new tax introduction targeting regular banking transactions.
The service urged the public to ignore misleading narratives circulating online. They emphasized relying solely on official communications for accurate tax information. Provided clarifications specify that VAT applies only to service charges like transfer fees or card issuance costs. The tax does not touch the actual money being moved or withdrawn from accounts.
Interest earned on savings or deposits remains exempt from value-added tax. Basic food items, essential medical products, and educational services are also not subject to VAT. Officials explained the change involves enhanced compliance enforcement, not new legislation. The act did not introduce additional burdens on everyday essentials for citizens.
Financial institutions are being reminded to properly remit already collected VAT. The position on taxing bank service charges has reportedly existed for years. This enforcement push aims to correct widespread misunderstanding about the law's scope. The statement effectively denies any new tax introduction targeting regular banking transactions.
