Nigeria Imposes N10 Million Fine on Crypto Exchanges for Tax Non-Compliance

The Nigeria Revenue Service (NRS) has released guidelines for taxing virtual assets in Nigeria. According to the guidelines, Virtual Asset Service Providers (VASPs), including cryptocurrency exchanges and peer-to-peer marketplace operators, risk a N10 million penalty for failing to comply with tax obligations.

The guidelines require VASPs to register with the NRS, ensure customers provide valid Tax Identification Numbers (TINs), deduct applicable withholding taxes, collect Value Added Tax (VAT) and stamp duties where applicable, remit taxes within statutory timelines, and file necessary tax returns.

The NRS aims to improve tax compliance in Nigeria's growing virtual asset ecosystem by bringing digital asset transactions within the country's tax net. Penalties for non-compliance range from N10 million for the first month of default to N1 million for every subsequent month until the breach is remedied.