Banks to charge 7.5% VAT on mobile transfer and PoS transaction fees

Banks to charge 7.5% VAT on mobile transfer and PoS transaction fees

Banks will begin deducting 7.five percent value-introduced tax (VAT) on banking services, together with point of sale (POS) transaction expenses and cellular switch charges, from January 19.

In an email to clients, Moniepoint Microfinance financial institution said the price was once the end result of a central authority-recommended regulatory directive. The VAT applies to the N50 stamp obligation and does no longer have an effect on the actual value of transactions or withdrawals.

Moniepoint stated the proceeds could be remitted to the Nigerian revenue service (NRS). “We would love to tell you of an upcoming government-advocated regulatory exchange regarding price delivered Tax (VAT),” the bank stated.

“From Monday, 19 January 2026, we are required to gather a 7.five% VAT, to be remitted to the Nigerian sales carrier (NRS) (previously referred to as the Federal Inland sales provider).

“VAT will practice to positive banking services that include: electronic banking costs along with POS transaction charges, cellular banking prices (transfers), u.s.a. transaction expenses, POS activation rate, card issuance rate and Moniebook subscription.”

The financial institution added that the tax would also apply to other fees along with mortgage processing and documentation charges. “offerings that don’t entice VAT consist of: interest on loans and advances, and hobby on deposits and credit score,” Moniepoint stated.

“Please word: This isn’t a price increase through Moniepoint. Moniepoint is required to gather and remit VAT to the Nigerian revenue carrier (NRS).

“The NRS has communicated a closing date of nineteenth January for all financial institutions (commercial banks, microfinance banks and digital money transfer operators) to start gathering and remitting VAT.”

The financial institution clarified that VAT is applied only to banking or service fees and not to interest, adding that the rate will appear separately on transaction statements. The VAT charge stays 7.five percentage under modern tax law.