Cryptocurrency traders in Nigeria will, starting July 8, 2024 pay 7.5% value-added tax (VAT).

Some cryptocurrency platforms like KuCoin have already stated that they will start collecting VAT on their transaction fees for Nigerian users on the given date.

KuCoin added that the VAT will be applied to the transaction fee, not the total transaction amount.

It said: “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 percent 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.

“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.”

Recall that in 2022, Zainab Ahmed, then Minister of Finance, Budget and National Planning, subtly stated that the government intends to tax cryptocurrencies and other digital assets.