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

Banks will begin deducting 7.5 percent value-added tax (VAT) on banking services, including point of sale (POS) transaction fees and mobile transfer fees, from January 19.

In an email to customers, Moniepoint Microfinance Bank said the charge was the result of a government-endorsed regulatory directive. The VAT applies to the N50 stamp duty and does not affect the actual value of transactions or withdrawals.

Moniepoint said the proceeds would 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),” the bank 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.”