Nigerian Government Clarifies VAT on Bank Services Not New Policy

The Nigerian government has stated that the VAT on bank services is not a new policy but a clarification of existing tax laws. The Nigeria Revenue Service (NRS) emphasizes that banks are required to charge and remit VAT on various services such as electronic money transfers, commission services, USSD charges, card issuance fees, and account maintenance charges.

The move aims to strengthen compliance and enforcement in the banking and microfinance sectors to ensure proper VAT collection. This initiative is part of broader efforts to standardize VAT collection and enhance revenue generation in Nigeria's growing digital economy.