Things To Know About New 7.5% VAT In Nigeria

News Update

You are NOT paying 7.5% VAT on the money you transfer.

The VAT is charged only on the bank or USSD service fee, not on the transfer amount itself.

What this really means in plain language:

When you use:
​Mobile banking apps
​USSD codes like *737#, *894#, etc
​Banks charge a service fee for the transaction.
7.5% VAT is added to that service fee only.

Simple Examples:

​Example 1: App transfer
​You transfer ₦10,000
​Bank transfer fee = ₦10
​VAT (7.5% of ₦10) = ₦0.75
​Total charge = ₦10.75
(Not ₦750, not 7.5% of ₦10,000)

​Example 2: USSD transfer
​You transfer ₦5,000 via USSD
​USSD fee = ₦6.98
​VAT (7.5% of ₦6.98) = ₦0.52
​Total charge = ₦7.50

​Example 3: Bigger transfer
​You transfer ₦200,000
​Transfer fee = ₦50
​VAT (7.5% of ₦50) = ₦3.75

​Total charge = ₦53.75
​What you are NOT being charged for
​VAT is not taken from your transfer amount.
​You are not losing 7.5% of your money.

The recipient receives the full amount you sent.

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