Banks will start deducting 7.5 percent value-added tax (VAT) on banking services, including point of sale (POS) transaction fees, mobile banking transfer fees, from January 19.
In an email to customers, Moniepoint Microfinance Bank said
the charge stems from a government-endorsed regulatory change.
VAT is charged on the N50
stamp duty and does not affect the actual amount being transferred or
withdrawn.
According to the bank, the proceeds of the charge will be
remitted to the Nigerian Revenue Service (NRS).
“We would like to inform you of an upcoming
government-endorsed regulatory change regarding Value Added Tax (VAT),”
Moniepoint said.
“From Monday, 19 January 2026, we are required to collect a
7.5% VAT, to be remitted to the Nigerian Revenue Service (NRS) (formerly known
as the Federal Inland Revenue Service).
“VAT will apply to certain banking services that include: electronic banking charges such as POS transaction fees, mobile banking fees (transfers), USSD transaction fees, POS activation fee, card issuance fee and Moniebook subscription.”
According to the bank, the charge also applies to other
fees, such as loan processing and documentation fees.
“Services that DO NOT attract VAT include: interest on loans
and advances, and interest on deposits and savings,” Moniepoint said.
“Please note: This is not a price increase by Moniepoint.
Moniepoint is required to collect and remit VAT to the Nigerian Revenue Service
(NRS).
“The NRS has communicated a deadline of 19th January for all
financial institutions (commercial banks, microfinance banks and electronic
money transfer operators) to start collecting and remitting VAT.”
The bank clarified that VAT applies only to banking or
service fees and not to interest, adding that the charge will be listed
separately on transaction reports and statements.
The new tax laws retain the VAT rate at 7.5 percent.
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