Nigeria to begin collection of 7.5% VAT on crypto transactions July 8

The Federal Government will begin the collection of Value-Added Tax of 7.5 percent on every cryptocurrency transaction from July 8.

One of the cryptocurrency platforms in the country, KuCoin, disclosed this in an email to its users and obtained by Ripples Nigeria on Wednesday.

It wrote: “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.

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“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.

“If you have any questions or need further assistance, please join our Telegram Group, or contact our Online Support Team. We are here to provide you with more assistance and guidance. Thank you for your cooperation and understanding.”

By: Babajide Okeowo

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