Crypto exchange introduces 7.5% VAT transactions for Nigerian users effective from July 8
A cryptocurrency exchange, KuCoin, has announced that it will commence collection of a 7.5 per cent value-added tax (VAT) on transaction fees for users in Nigeria, owing to a regulatory update in Nigeria.
In a statement on Wednesday, the cryptocurrency platform said the VAT deduction would be effective from July 8, adding that for every trade, the 7.5 per cent VAT will be applied to the transaction fee — not the total transaction amount.
The company said, “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.”
According to KuCoin, if a user buys $1,000 worth of bitcoin with a 0.1 per cent fee rate, the transaction fee would be $1.
The VAT, the crypto platform said, would be 7.5 per cent of the fee, which is $0.075 — the net amount for the transaction would be $998.925.
“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 the KuCoin platform,” the crypto exchange said.
