The Nigeria Revenue Service (NRS) has dismissed reports claiming that Value Added Tax (VAT) is being charged directly on bank transfers, clarifying that the 7.5 per cent VAT applies only to bank service charges, not to the funds transferred by customers.
In a statement issued on Thursday and signed by Dare Adekanmbi, Special Adviser on Media to the NRS Chairman, Zaccheus Adedeji, the agency described the reports as misleading.
The NRS explained that VAT has always applied to banking service fees under Nigeria’s tax framework and was not introduced by the Nigeria Tax Act.
According to the agency, VAT is charged strictly on fees, commissions or service charges imposed by banks, not on the amount transferred or withdrawn.
“For instance, if a bank charges ₦10 for a transfer, VAT of 7.5 per cent applies to that ₦10, not to the money being transferred,” the statement said.
The revenue service also clarified that interest earned on savings accounts, fixed deposits and similar investments remains VAT-exempt, while basic food items, essential goods, medical services, pharmaceutical products and core educational services are also excluded from VAT.
The NRS stressed that recent actions focus on compliance and enforcement, not the introduction of new taxes, and urged the public to rely on official sources for accurate tax information.
