The Nigerian government will start collecting value-added Tax (VAT) of 7.5 percent on cryptocurrency transactions from July 8.
This was made public by KuCoin, a cryptocurrency platforms operating in Nigeria, via an email to its users.
According to KuCoin, the VAT will be applied to the transaction fees in each trade not the transaction amount.
Part of the email reads: “Dear KuCoin User, We are writing to inform you of an important regulatory update that impacts our users from the Republic of Nigeria. Starting from July 8th, 2024, we will begin collecting a Value-Added Tax (“VAT”) at a rate of 7.5% on transaction fees in each trade for users whose KYC information is registered in Nigeria.
“Example Calculation:
Transaction: Buy 1,000 USDT worth of BTC
Fee: 1 USDT (0.1% fee rate)
Tax: 0.075 USDT (7.5% of the fee)
Net Amount for Transaction: 998.925 USDT
“Please note that the VAT will be applied to the transaction fees in each trade, not the transaction amount, and covers all transaction types on KuCoin platform”.
