Nigeria introduces 7.5% VAT on cryptocurrency transactions

KuCoin, one of the leading cryptocurrency exchange, has revealed it will begin collecting a 7.5 percent value-added tax (VAT) on transaction fees for its users in Nigeria.

This comes following a decision in regulatory update in the country, prompting KuCoin to introduce the VAT.

In a statement released on 3rd of July, 2024, KuCoin confirmed that the VAT deduction will take effect from 8th of July, 2024. The company clarified that the 7.5 percent VAT will be applied specifically to the transaction fee, not the total amount.

For example, if a user purchases $1,000 worth of Bitcoin with a 0.1 percent fee, the transaction fee would be $1. Consequently, the VAT on this fee would be $0.075, making the net amount for the transaction $998.925.

The statement read;

“We are writing to inform you of an important regulatory update that impacts our users from 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.

“Nb: The 7.5% is only charged on the 0.1%/0.05% transaction fee and not your total amount which will be remitted.

“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.” [CONTINUE READING HERE]>>>>