BREAKING: TAX: FG Mandates 7.5% VAT on Mobile Transfers and USSD From Jan 19 FG Announces Implementation of 7.5% VAT. What Can and Can't be Tax.

By Ndon-Eyo2 Reporter Ndon-Eyo II Etinan.

 

FGN VAT 

 

BREAKING: TAX: FG Mandates 7.5% VAT on Mobile Transfers and USSD From Jan 19 FG Announces Implementation of 7.5% VAT on Selected Electronic Banking Services From January 19 The Federal Government has announced that a 7.5% Value Added Tax (VAT) will be applied to selected electronic banking services, including mobile
Moniepoint MFB Explain in details What FGN VAT is all about and Want Can and Can Not Be Tax. 


  • What is VAT. 

  •  (Value Added Tax) is a Government-mandated tax applied to the supply of certain goods and services in Nigeria. Moniepoint collects it on behalf of the Nigeria Revenue Service (NRS) and remits it to the Government.

2. Why am I seeing VAT charges now?
The Law now requires VAT at 7.5% to be applied to certain banking fees of  financial institutions such as commercial and microfinance banks and electronic money transfers operators. This is not a Moniepoint price increase.

3. Which services attract VAT?
 VAT applies to service fees such as:

  • POS transaction fees
  • POS issuance fee
  • Electronic/mobile banking fees
  • USSD transaction fees
  • Card issuance
  • Moniebook subscription
  • Loan processing and documentation fees (VAT applies to processing/documentation only, not the loan interest)

4. Which services do NOT attract VAT?

  • Interest on loans and advances
  • Interest on deposits and savings

Any type of interest remains VAT-free.

5. Is Moniepoint increasing prices?
No, Moniepoint is not increasing fees. VAT is a government tax that applies on goods and services, not a Moniepoint fee increase. Moniepoint charges remain the same as in 2025.

6. Does Moniepoint keep this VAT?
 No. Moniepoint collects and remits VAT in full to the Government.

7. How much is VAT?
VAT is charged at 7.5% of the applicable service fee and will be shown on your receipt and account statement separately.

8. Why is loan interest not VATable?
 Loan interest is considered a financial return, not a service fee, so it is exempt from VAT.

9. Will VAT appear on my receipt or statement?
Yes. VAT will be clearly shown separately on your receipt and account statement for transparency.

10. Who charges VAT?
The Federal Government charges VAT. Moniepoint only collects it on behalf of the government.

11. Why am I seeing VAT on loan processing/documentation fees?

 VAT applies to the service of processing and reviewing loan documents, not the loan interest itself.



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