Nigeria to start collecting 7.5% VAT on crypto transactions on July 8

The Federal Government will begin collecting a Value Added Tax of 7.5 percent on every cryptocurrency transaction starting July 8.

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

It reads: “Dear KuCoin users, We are writing to inform you of an important regulatory update affecting our users from the Republic of Nigeria. Starting July 8, 2024, we will begin collecting a Value Added Tax (“VAT”) of 7.5% on transaction fees on every trade for users whose KYC information is registered in Nigeria.

“Calculation Example:

Transaction: Buy BTC worth 1,000 USDT

Fee: 1 USDT (fee rate 0.1%)

Tax: 0.075 USDT (7.5% of fees)

Net Amount for Transaction: 998,925 USDT

“Please note that VAT will be applied to the transaction fees on each trade, not the transaction amount, and covers all types of transactions on the KuCoin platform.

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

By: Babajide Okeowo

Nigeria to start charging 7.5% VAT on crypto transactions on July 8 first appeared on Latest Nigeria News | Top Stories from Ripples Nigeria.