Cryptocurrency traders in Nigeria are to start paying 7.5 per cent Value-Added Tax (VAT) with effect from July 8, 2024.
A cryptocurrency platform, KuCoin, said in an email that it would commence collection of the VAT on transaction fees for users in Nigeria from July 8.
The report by Vanguard newspaper on Friday said that KuCoin explained that a regulatory update in Nigeria led to its decision to introduce the VAT.
KuCoin said that for every trade, the 7.5 per cent VAT would be applied to the transaction fee, not the total transaction amount.
“We are writing to inform you of an important regulatory update that impacts our users from Nigeria.
“Starting from July 8, 2024, we will begin collecting a Value-Added Tax (VAT) at a rate of 7.5 per cent on transaction fees in each trade for users whose KYC information is registered in Nigeria.
“Note: The 7.5% is only charged on the 0.1%/0.05% transaction fee and not your total amount which will be remitted,” the report quoted KuCoin as saying.
GIK/APA