FG Orders Banks, Fintechs To Remit VAT On Service Fees - Business

FG Orders Banks, Fintechs To Remit VAT On Service Fees - Business - Nairaland

Nairaland Forum › Nairaland General › Business › FG Orders Banks, Fintechs To Remit VAT On Service Fees (10248 Views)

FG Orders Banks, Fintechs To Remit VAT On Service Fees by dre11(op): 10:15am On Jan 15

The Federal Government has directed all banks and fintechs to collect and remit 7.5 per cent value-added tax on certain electronic banking services, effective Monday, January 19, 2026, according to an email notice issued by payment platforms.

The VAT will apply to electronic banking charges, including mobile money transfers, USSD transaction fees, and card issuance fees, according to an email notice on Wednesday shared with customers by Moniepoint.

For example, if a bank charges N100 to make a transfer, the 7.5 per cent VAT will be applied to that service fee, not the money being sent.

“From Monday, January 19, 2026, we are required to collect a 7.5 per cent VAT, to be remitted to the Nigerian Revenue Service (formerly known as the Federal Inland Revenue Service).

“VAT will apply to certain banking services that include electronic banking charges such as mobile banking fees (transfers), USSD transaction fees, and card issuance fees,” the email read.

Other operators are expected to issue similar notices to their customers in the coming days. Services that will remain exempt include interest earned on deposits and savings, meaning customers will not pay tax on the returns from their accounts.

The NRS, formerly known as the Federal Inland Revenue Service, has set the deadline to ensure that all commercial banks, microfinance banks, and electronic money operators comply with the collection and remittance requirement.

Moniepoint stressed that this is not a price increase but a statutory obligation. “Moniepoint is required to collect and remit VAT to the Nigerian Revenue Service,” the company said in a statement.

The move is part of the government’s broader efforts to standardise VAT collection on digital financial services and expand revenue generation amid Nigeria’s growing digital economy. VAT on banking transactions is not entirely new; the NRS is now enforcing uniform collection rules across all platforms, ensuring compliance across the sector.

Customers have been assured that the new tax will be clearly itemised, with the VAT shown separately on transaction statements and reports.

In December, several commercial banks informed customers that the N50 stamp duty would be deducted on electronic transfers of N10,000 and above, following the commencement of provisions of the new Tax Act.

The charge, previously known as the EMTL, has now been formally reclassified as stamp duty and will be applied as a one-off fee on qualifying electronic transfers.

https://punchng.com/fg-orders-banks-fintechs-to-remit-vat-on-service-fees/?amp

2 Likes 1 Share

Re: FG Orders Banks, Fintechs To Remit VAT On Service Fees by chatinent: 10:35am On Jan 15

I used to think the remittance was automatically done to the CBN. Didn't know it stays with the bank until it is requested.

11 Likes 1 Share

Re: FG Orders Banks, Fintechs To Remit VAT On Service Fees by christejames(m): 10:47am On Jan 15

Tinupoo truly prepared for us the masses this year, that's why he left the country to his main country France and was remotely dishing out punitive measures to us as a new year gift...

My banks have been sending SMS about this charges since yesterday, now I'm CORNfused 🌽 and don't even know how I will go about this new added hardship from the table of Tinupoo cry

Tinupoo, you won't end well!

37 Likes 2 Shares

Re: FG Orders Banks, Fintechs To Remit VAT On Service Fees by Rejouir: 10:48am On Jan 15

Tinubu is after my life, APC is after my life o! huh

28 Likes 2 Shares

Re: FG Orders Banks, Fintechs To Remit VAT On Service Fees by Ahayalift: 10:48am On Jan 15

chatinent:
I used to think the remittance was automatically done to the CBN. Didn't know it stays with the bank until it is requested.

It's interesting. So, what would happen to the interests when it stays for Long with the Bank?
I don't like this Tax thing, but one thing I've recently learned is that it is always possible to become Rich and Succesful under any Government, that's why I produced this Song Titled "Let Your Greatness Manifest"
Have you ever seen Bill Gates dancing before? Have you ever seen our beloved Great Dangote dancing to melodious tune?
shocked

Watch: https://www.nairaland.com/8599625/music-alert-let-greatness-manifest#138144689

3 Likes

Re: FG Orders Banks, Fintechs To Remit VAT On Service Fees by princeade86(m): 10:49am On Jan 15

Oroyi yio ma leyin, ajantiele

7 Likes 1 Share

Re: FG Orders Banks, Fintechs To Remit VAT On Service Fees by SmartPolician: 10:49am On Jan 15

What else does Tinubu know apart from taking from the people?

28 Likes 1 Share

Re: FG Orders Banks, Fintechs To Remit VAT On Service Fees by ImoleNaija: 10:49am On Jan 15

Gtbank must do o. The way that bank dey take deduct fees ehh. Transaction or no transaction, una must get debit alerts for fees (esp stamp duties) late in the night embarassed

17 Likes

Re: FG Orders Banks, Fintechs To Remit VAT On Service Fees by Klington: 10:49am On Jan 15

Tinubu is on a mission of enjoying the sweat of others he did not labor.

20 Likes 2 Shares

Re: FG Orders Banks, Fintechs To Remit VAT On Service Fees by Vifx: 10:49am On Jan 15

That one has entered inside native doctor's handbag 😂

6 Likes 1 Share

Re: FG Orders Banks, Fintechs To Remit VAT On Service Fees by Treasure17(m): 10:50am On Jan 15

What Tinubu can not do does not exist. grin

7 Likes

Re: FG Orders Banks, Fintechs To Remit VAT On Service Fees by helinues: 10:50am On Jan 15

Good.

Let all the government agencies be using one single payment details, reference can separate the payment

27 Likes 1 Share

Re: FG Orders Banks, Fintechs To Remit VAT On Service Fees by njokuuche77(m): 10:50am On Jan 15

and the taxation continues

7 Likes 2 Shares

Re: FG Orders Banks, Fintechs To Remit VAT On Service Fees by Toredola: 10:50am On Jan 15

What will they do with it? They will buy big cars, send their kids to school abroad and marry more wives, while common Nigerians continue to live in poverty.

21 Likes 3 Shares

Re: FG Orders Banks, Fintechs To Remit VAT On Service Fees by Realdeals(m): 10:50am On Jan 15

They always charge VAT on all the listed services, is it that they are not remitting?

3 Likes

Re: FG Orders Banks, Fintechs To Remit VAT On Service Fees by Treasure17(m): 10:51am On Jan 15

Rejouir:
Tinubu is after my life, APC is after my life o!

Don't die yet. Davido said Dem go feel it.

Re: FG Orders Banks, Fintechs To Remit VAT On Service Fees by anonimi: 10:51am On Jan 15

dre11:
https://punchng.com/fg-orders-banks-fintechs-to-remit-vat-on-service-fees/?amp

Money must be made.

Maga must pay.

How else will Tinubu get enough money to bribe politicians to decamp to APC and make 2027 easy?

How else will he have money for his bullion vans to buy votes, as he has done for the past 27 years of holding 20 million Lagosians hostage huh

NaijaRoyalty:
…Says Buhari doesn’t have my kind of money

However, Buhari doesn’t have the kind of money I can steal neither does he have the money I can collect. He doesn’t even have the money for Lagos votes. So, whatever I promise, it’s for real and is coming from my pocket. It’s not until I go to Alausa before I get money to give you.”

Addressing APC supporters on the need to deliver votes, Tinubu said handsome cash rewards await those who can deliver votes for the party.

He said he would not make mistakes of the past where people would collect money in advance and not deliver on election day.

Tinubu added, “Those of you that say you come to Bourdillon for mobilisation, it is mobilisation that we are doing here or don’t you understand? Definitely, if you know people in your neighbourhood, our members, how we used to do.

https://www.google.com/amp/s/punchng.com/i-said-i-was-richer-than-osun-state-tinubu-admits/%3famp

27 Likes 3 Shares

Re: FG Orders Banks, Fintechs To Remit VAT On Service Fees by DenreleDave(m): 10:53am On Jan 15

Let me spell it out clearly:
If you send 1m naira to someone and the bank charges you 50 naira as transfer fee, what govt is saying is that you will pay a total of 1,000,053.75

See breakdown

Amount transferred: #1,000,000
Bank transfer charge: #50
Vat 7.5% on Bank fee: #3.75 (0.075 x 50)

Total charge is now 1,000,053.75

Nevertheless, our govt is wicked , we really need it protest against this regime

30 Likes 1 Share

Re: FG Orders Banks, Fintechs To Remit VAT On Service Fees by spiSeyi: 10:54am On Jan 15

The VAT has been there before but the multiple charges and taxation (stamp beauty , VAT, Transfer charges, SMS and other hidden feet) is inhumane and this is what is making Nigerians poorer. The Nigerian banks are designed to rip the masses off there hard earned money, and they were successful at this because most Nigerians lack financial education we hardly run through our bank statements. sad

6 Likes

Re: FG Orders Banks, Fintechs To Remit VAT On Service Fees by aieromon(m): 10:54am On Jan 15

Realdeals:
They always charge VAT on all the listed services, is it that they are not remitting?

Commercial banks, yes.
The VAT commission charge by fintechs is a new development.

1 Like

Re: FG Orders Banks, Fintechs To Remit VAT On Service Fees by omoredia: 10:56am On Jan 15

chatinent:
I used to think the remittance was automatically done to the CBN. Didn't know it stays with the bank until it is requested.

Thats a lie oga. Stop lying.

Re: FG Orders Banks, Fintechs To Remit VAT On Service Fees by sacajawea(m): 10:57am On Jan 15

First one is Actual transfer charge.
Then 2nd one The 50 naira or 100 naira stamp.
3.) is 7.5% VAT on the above.
4th is....
Correct?

Re: FG Orders Banks, Fintechs To Remit VAT On Service Fees by bobogogo: 10:59am On Jan 15

christejames:
Tinupoo truly prepared for us the masses this year, that's why he left the country to his main country France and was remotely dishing out punitive measures to us as a new year gift...

My banks have been sending SMS about this charges since yesterday, now I'm CORNfused 🌽 and don't even know how I will go about this new added hardship from the table of Tinupoo

Tinupoo, you won't end well!

Hahahahaha...

na so so CORNfusion in the CORNtry.

Lol

1 Like

Re: FG Orders Banks, Fintechs To Remit VAT On Service Fees by ranoman: 11:03am On Jan 15

That's how he raised lagos igr. And left it as a massive refused dump which took fashola years to clean.
All he does is tax. Governance is zero. Service provision zero

9 Likes 1 Share

Re: FG Orders Banks, Fintechs To Remit VAT On Service Fees by atobs4real(m): 11:05am On Jan 15

You have introduced N50 before now and u are still introducing another 7.5%. Na waooo. Money don suffer for government hand

1 Like

Re: FG Orders Banks, Fintechs To Remit VAT On Service Fees by ppogba: 11:07am On Jan 15

Klington:
Tinubu is on a mission of enjoying the sweat of others he did not labor.

By telling Banks to remit what they have collected and deducted?

This your madness don reach to enter market o.

Re: FG Orders Banks, Fintechs To Remit VAT On Service Fees by OKOATA(m): 11:07am On Jan 15

The funny thing about the thread is no single agbado guy here to defend this. Una mind go touch ground. grin

6 Likes 1 Share

Re: FG Orders Banks, Fintechs To Remit VAT On Service Fees by kentokay71: 11:08am On Jan 15

Can you read at all, how does this affect you.

christejames:
Tinupoo truly prepared for us the masses this year, that's why he left the country to his main country France and was remotely dishing out punitive measures to us as a new year gift...

My banks have been sending SMS about this charges since yesterday, now I'm CORNfused 🌽 and don't even know how I will go about this new added hardship from the table of Tinupoo

Tinupoo, you won't end well!

Re: FG Orders Banks, Fintechs To Remit VAT On Service Fees by Jayboiii: 11:10am On Jan 15

Pharaoh let my ppl go..these task masters fon dey too much.

1 Like

Re: FG Orders Banks, Fintechs To Remit VAT On Service Fees by christejames(m): 11:10am On Jan 15

kentokay71:
Can you read at all, how does this affect you.

Do you have comprehension problems?

At least, read the comments of those that have broken it down on how it will affect you.

1 Like

Re: FG Orders Banks, Fintechs To Remit VAT On Service Fees by Bluntemperor: 11:17am On Jan 15*

SmartPolician:
What else does Tinubu know apart from taking from the people?

President Tinubu - Should Pause and Ask himself,
You have been taking from the People - the •Subsidies Removed,
•The TAXES Charged on the People-and is Coming in different Shades and Measurements,
But What Are The People Enjoying?
•Till date- NNPC AND SUBSIDIARIES - ARE NOT WORKING,
•DISCOSS Are Not Performing - with More Darkness everywhere!
• How Many Hospitals Have you built and why Do Our Government Officials Steadily go Abroad for their Medicare- how many Hospitals are in the Local Govts Areas?
- Where Are The Social Amenities - that the People Should Fall 🍂 On,Since You Removed their Daily Bread( OIL 🪔🛢️?
For Example:
•3- Months Ago,the Govt-asked the Masses to Open Accounts at Some Banks- with 2k,e.g.
-Fidelity Bank,
-Keystone Bank,
-Stanbic,etc, and Large Numbers of People did that - given them the Impression that they( govt) wants to give them Money 🤑 - For Empowering,till Today - Nothing has been done!
•Is This How Government Wants To Scam People ⁉️
•Why Is This Govt Easily Takes Away From the People, Without Equivalent Productions that People Can See Or Feel?
This Is Not The Way Europe 🌍, America, etc ,Is Build.
For you can't be tasking the People - With,
No Money for Investment,
No Money For Savings,
then Little Consumption.
This GOVT- POLICIES ARE ADDING TO POVERTY ON THE MASSES.
Govt- Should Reverse ◀️ these Policies- for Equity And Prosperity Sake.

5 Likes 1 Share

Re: FG Orders Banks, Fintechs To Remit VAT On Service Fees by Elipsis: 11:18am On Jan 15

Wouldn't this amount to double taxation?

Someone goes to a supermarket and pays VAT for the items purchased. He still pays another VAT for the money transferred to the supermarket for the same items.

Let's say the transaction is N10,000. The customer will be forced to pay VAT on goods, VAT on transfer, Bank Transfer charge, Stamp Duty charge ,and SMS alert fee!!!

3 Likes 1 Share

1 2 Reply

Automated AML Systems: Banks, Fintechs Face New CBN Deadline • House Of Reps Orders Gtbank To Remit VAT On Remita Commission From 2015-2022 • CBN Orders Banks To Collect Old ₦‎500, ₦‎1,000 Notes • 2 • 3 • 4

Remi Tinubu Raises ₦20bn For National Library Project • Gtbank Now In UK • YouWin Second Round Candidates List For The 36 States And FCT