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POS Operator / Agent Tax Guide
OPay, PalmPay, Moniepoint, FirstBank, and other agent banking
Your Transaction Volume is NOT Your Income
As a POS agent, millions flow through your account—but only your commission is taxable.
Taxable Income
Only Commission
Tax-Free Threshold
₦800,000/year
VAT Required
No (if <₦25M)
TIN Required
Yes (NIN = TIN)
Am I liable for tax as a POS operator?
Only on your COMMISSION income, not transaction volume. If your annual commission is below ₦800,000, you owe NO income tax.
Example:
If you process ₦5M in transactions monthly but earn ₦30,000 commission, your taxable income is ₦30,000—not ₦5M.
What You Can Deduct
✓POS machine cost or rental
✓Data/Internet for transactions
✓Generator fuel (business portion)
✓Bank charges and transaction fees
✓Phone used for business
✓Security/theft insurance
Common Mistakes to Avoid
- ✗Thinking all transaction volume is income
- ✗Not keeping agent agreement as proof
- ✗Mixing personal and business accounts
- ✗Not tracking commission separately from deposits