The management of the Nigerian Stock Exchange NSE), on Thursday informed stockbroking firms that implementation of the Finance Act 2019, signed into law by President Muhammadu Buhari will commence on February 1, 2020.
However, since that date is Sunday, payment of the 7.5%, VAT charges on brokerage commission and other statutory fees payable on stock market transactions will begin on Monday, February 2, 2020.
In a notice to stockbrokers, the NSE said charges on transactions carried out on its trading platform will now attract the new VAT charge, which is a 50% increment over the previous 5.0%.
For the avoidance of doubts, the NSE listed fees that will attract the new VAT rate to include the brokerage commission, fees payable to the Securities and Exchange Commission (SEC), Nigerian Stock Exchange (NGSE), and the Central Securities Clearing System (CSCS).