Crypto tax Nigeria: KuCoin has just announced that per recent regulatory update, users with KYC registered to the federal republic of Nigeria will start paying 7.5% VAT (Value-Added Tax) in transaction fees.
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In a recent email sent to all Nigerian users, trading on p2p trades and other type of trades will attract additional crypto tax of 7.5% VAT to be paid in transaction fees which will be sent to the Nigerian government.
The email released few hours ago reads;
“We are writing to inform you of an important regulatory update that impacts our users from the Republic of 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.
Example Calculation:
- Transaction: Buy 1,000 USDT worth of BTC
- Fee: 1 USDT (0.1% fee rate)
- Tax: 0.075 USDT (7.5% of the fee)
- Net Amount for Transaction: 998.925 USDT
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.”
This new development comes after the recent ban on p2p trades in the Nigerian market for all crypto exchanges like Binance, OKX, KuCoin, and ByBit. Nigeria now has a crypto tax in VAT collected through transaction fees.
What you should know: Starting from July 8th, Nigeria nationals crypto tax will start. Nigerians who have KYC verified accounts will pay tax at a fixed fee VAT of 7.5% in fees, on all trades on KuCoin. This new development might also come into other exchanges sooner or later.
