What You Need To Know About 7.5% VAT Imposed On Bank Transfers And PoS Transactions

Nigerian banks will from January 19, 2026, begin charging a 7.5% value-added tax (VAT) on certain banking services, including mobile transfers and point-of-sale (PoS) transaction fees.

Moniepoint Microfinance Bank informed its customers via email that the charge is based on a new regulation approved by the government.

The bank explained that the VAT is applied to service charges such as the N50 stamp duty and does not reduce the actual amount being sent or withdrawn.

According to the bank, the money collected will be paid to the Nigerian Revenue Service (NRS).

In its notice, Moniepoint said it is required to collect the tax from Monday, January 19, 2026, and remit it to the NRS, formerly known as the Federal Inland Revenue Service.

“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.

However, the bank noted that some services like interest on loans, savings, and deposits will not attract VAT.

“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.”

Moniepoint added that VAT will apply only to service-related charges, not interest, and will be shown separately on transaction receipts and account statements.

The VAT rate remains unchanged at 7.5 percent under the new tax rules.

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