July 10, 2019/InvestmentOne Update
We wish to inform you of the expiration of Value Added Tax (VAT) exemption of commissions on the Nigeria Stock Exchange (NSE) transactions.
The order for exemption of VAT from all NSE transactions was granted by the Coordinating Minister of the Economy and the Honorable Minister of Finance in 2014. This order became effective on the 25th July, 2014 with a 5 -year validity period which expires on the 24th July, 2019.
In this regard, all Dealing members of the Nigerian Stock Exchange have been notified to resume charging of VAT on all NSE transactions effective 25th July, 2019 without any further extensions from the Federal Government (please click to download circular from the NSE on the subject matter).
Consequently, a 5% VAT on brokerage commission will be restored effective 25th July, 2019.