Nigeria – New VAT of 7.5% Begins

Nigeria – New VAT of 7.5% Begins

You might have received an email that looks thus:

With the recent assent of the 2020 finance bill into law, which reviewed the Value Added Tax (VAT) rates from 5% to 7.5%. We hereby inform you that in line with the directives of the Federal Government of Nigeria, from the 1st of February, 2020, you will be billed 7.5% for VAT on all our Services (adapted from DHL).

Welcome to the new era of 7.5% VAT. Many invoices may be updated if they were not processed at last night cut-off. The banks have been emailing of this update, and the era is already on.

This one from First Bank

Implementation of 7.5% Value Added Tax (VAT) rate commences on 1st February 2020

Further to the enactment of the Finance Act 2019, the Federal Government has announced that the implementation of the 7.5% Value Added Tax (VAT) rate under the new Finance Act will commence on 1st February 2020.

In line with the Federal Government directives, please be informed that VAT on each eligible bank transaction or service will be charged at the new rate of 7.5% with effect from 1st February 2020.

The table below highlights the key changes:

Be assured that we will continue to put you first by providing the best financial services solutions and delivering the gold standard of value and excellence.

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