Friday, 05 July 2024 04:40

Nigeria to collect 7.5% VAT on crypto transaction fees

Rate this item
(0 votes)

KuCoin, a cryptocurrency exchange, says it will commence collection of a 7.5 percent value-added tax (VAT) on transaction fees for users in Nigeria.

The company said a regulatory update in Nigeria led to KuCoin’s decision to introduce the VAT.

In a statement on July 3, the cryptocurrency platform said the deduction of the VAT would be effective from July 8.

KuCoin said for every trade, the 7.5 percent VAT will 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,” the company said.

“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 percent fee rate, the transaction fee would be $1.

The VAT, the crypto platform said, would be 7.5 percent 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 KuCoin platform,” the crypto exchange said.

In 2022, Zainab Ahmed, former minister of finance, budget, and national planning, had initially hinted at government’s plans to tax cryptocurrencies and other digital assets. 

In the 2023 Finance Act, the government imposed a 10 percent tax on profits from digital assets, including cryptocurrencies.

However, the particular provision of the act was not enforced.

In May, the Securities and Exchange Commission (SEC) announced plansto delist naira from all peer-to-peer (P2P) platforms.

SEC said the decision was taken to avoid the level of “manipulation” happening in the cryptocurrency space.

 

The Cable

July 20, 2024

Dangote’s quest for import ban on diesel bad for Nigeria’s energy security, competition, FG says

Aliko Dangote has asked Nigeria to suspend imports of diesel and aviation fuel in a…
July 19, 2024

LG autonomy is guise for state capture, overtaxation - Afenifere

PRESS RELEASE Afenifere has stated that President Bola Tinubu administration's push for Local Government Autonomy…
July 20, 2024

Married men are revealing the ‘hardest parts’ of marriage that no one talks about

We recently asked married men of the BuzzFeed Community to tell us the hardest parts…
July 20, 2024

Husband uses drone to catch wife cheating on him with her boss

A Chinese man reportedly caught his wife cheating with her boss during work hours by…
July 16, 2024

Driver, 18 passengers abducted on Akwa Ibom highway

The driver and 18 passengers of a Port Harcourt-bound Akwa Ibom State Transport Corporation bus…
July 20, 2024

Here’s the latest as Israel-Hamas war enters Day 288

Top UN court says Israel's occupation of Palestinian territories illegal The United Nations' highest court…
June 19, 2024

Chips maker Nvidia rises to world’s most valuable company

Nvidia has become the world’s most valuable company following a staggering rally in its shares,…
June 18, 2024

Amusan secures fourth straight national title in 100m hurdles

Tobi Amusan has claimed her fourth consecutive national title in the women’s 100 metres hurdles…

NEWSSCROLL TEAM: 'Sina Kawonise: Publisher/Editor-in-Chief; Prof Wale Are Olaitan: Editorial Consultant; Femi Kawonise: Head, Production & Administration; Afolabi Ajibola: IT Manager;
Contact Us: [email protected] Tel/WhatsApp: +234 811 395 4049

Copyright © 2015 - 2024 NewsScroll. All rights reserved.