KuCoin, a cryptocurrency exchange operating in Nigeria, announced on Wednesday that it would begin charging a 7.5% Value-Added Tax (VAT) on transaction fees starting July 8, 2024.


This development follows the Federal Government’s recent tax enforcement actions against cryptocurrency platforms.

In a statement posted on its official X account, KuCoin specified that the 7.5% VAT, would apply to the transaction fee, not the total transaction amount.

For example, if a user buys $1,000 worth of Bitcoin (BTC) with a 0.1% fee rate, the transaction fee would be $1. The VAT would be 7.5% of the fee, which is $0.075, resulting in a net transaction amount of $998.925.

“We are writing to inform you of an important regulatory update that impacts our users in the Republic of Nigeria. Starting from July 8, 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,” the exchange said.