Nigeria’s tax authority has moved swiftly to reinforce VAT Clarity and protect public understanding. The Nigeria Revenue Service (NRS) has firmly dispelled widespread misinformation suggesting that Value-Added Tax (VAT) on banking services is a new imposition under the Nigeria Tax Act.
Importantly, the agency described those circulating reports as incorrect, misleading, and capable of creating unnecessary panic among citizens and businesses.
In a statement released on Thursday, the NRS made one point unmistakably clear. VAT on banking services has always existed in Nigeria’s tax framework. Therefore, nothing new has been introduced under the current law regarding electronic money transfers, bank fees, or commissions.
For context, banking services fall under taxable supplies as defined long before the transition from FIRS to NRS. However, recent online narratives falsely framed the existing tax structure as a fresh policy decision. As a result, confusion spread rapidly across social platforms and financial communities.
The NRS intervened to halt that misinformation and restore VAT Clarity across the financial ecosystem.
More specifically, the Service explained that charges such as transfer fees, commissions on transactions, and other service-related banking costs have historically attracted VAT under established tax regulations. Thus, the Nigeria Tax Act did not create a new category of taxation; instead, it simply sustains what has been operational for years.
Furthermore, the agency warned that inaccurate tax information undermines public confidence and distorts economic discourse. Clear communication, it stressed, remains essential for national financial stability.
Equally important, the NRS reassured Nigerians that there is no sudden policy shift targeting digital transactions. Electronic transfers remain governed by the same VAT treatment already embedded within the tax system.
By issuing this clarification, the NRS reinforced its commitment to transparency, accuracy, and taxpayer education. The move also aligns with broader Revenue Reform efforts aimed at improving understanding rather than introducing hidden burdens.
In addition, the Service urged media platforms and commentators to verify tax-related claims before publication. Responsible reporting, it noted, helps maintain trust between citizens and regulatory institutions.
Ultimately, this intervention highlights a critical reality. Not every headline reflects a new law. Sometimes, clarity simply corrects perception.
With this decisive response, the Nigeria Revenue Service has protected financial awareness, restored public confidence, and reaffirmed one simple truth: VAT on banking services is longstanding, not newly imposed.
