Banks have adjusted the stamp duty charges on electronic and other taxable transactions with effect from February 1, 2020.

This is in furtherance of the implementation of the new Finance Act recently signed by the President, Major General Muhammadu Buhari (retd.).

In a notification to its customers, the banks said the Tax Identification Number would only be required to open or operate business accounts.

Access Bank stated that while the old bill stipulated five per cent Value Added Tax, it explained that the new Act stipulated 7.5 per cent.

On stamp duty charge, it stated that under the old bill, “N50 applied on electronic funds’ transfers or deposits of N1,000 and above,” adding that under the new Act, “N50 applied on electronic funds’ transfer or deposits of N10,000 and above.”

The bank explained further that, “The Finance Bill, now called the Finance Act 2020, was recently signed into law by the President. The legislation is broad, covering many aspects of taxation and is specifically designed to stimulate small and medium business growth.”

Also, FSDH Bank stated, “Following the recent assent of the Finance Bill (now Finance Act 2020) by the Presidency, we write to inform you that all vatable transactions on your account will now attract a Value-Added Tax rate of 7.5 per cent with effect from February 1, 2020.

“This means that VAT charges applicable on all vatable transactions in your account will be increased from five per cent to 7.5 per cent in compliance with the Act.”
First Bank stated, “In line with the Federal Government directives, please be informed that VAT on each eligible bank transaction or service will be charged at the new rate of 7.5 per cent with effect from 1st February 2020.”

SOURCE:https://brandspurng.com/2020/02/03/banks-adjust-vat-charges-on-e-transactions-others/