Nigeria Introduces 7.5% VAT on Cryptocurrency Transactions – TrendyNewsReporters

KuCoin, a leading cryptocurrency exchange, has announced that it will begin collecting a 7.5% Value Added Tax (VAT) on transaction fees for its users in Nigeria.

The move follows a recent regulatory update in the country, which prompted KuCoin to introduce VAT.

In a statement released on July 3, KuCoin confirmed that the VAT deduction will take effect from July 8. 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 will be $1. Accordingly, the VAT on this fee will be $0.075, making the net amount for the transaction $998,925.

The statement reads: “We are writing to inform you of an important regulatory update that impacts our users from Nigeria. “Starting July 8, 2024, we will start collecting a Value Added Tax (VAT) at a rate of 7.5% on transaction fees on every transaction for users whose KYC information is registered in Nigeria. “Please note: The 7.5% is only charged on the 0.1%/0.05% transaction fee and not on the total amount that will be remitted.

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