The Nigeria Revenue Service (NRS) has directed Virtual Asset Service Providers (VASPs) and Peer-to-Peer (P2P) escrow operators in the country to make a valid Tax Identification Number (Tax ID) mandatory for account activation.
The requirement is part of the guidelines on the Taxation of Virtual Assets released on Monday as part of the agency’s new framework for taxing cryptocurrencies, stablecoins, tokenised assets, and other digital assets.
What You Need to Know:
The tax agency has explained that individuals and entities involved in virtual asset activities must register and obtain a valid Tax Identification Number before carrying out taxable activities within the digital asset ecosystem.
“Any person engaged in VAs activities shall register for tax purposes and obtain a Tax ID,” the agency stated.
This simply requires that any crypto users, investors, traders, and businesses operating within Nigeria’s virtual asset ecosystem are expected to have a recognised tax identity for compliance and reporting purposes.
This also means that any Virtual Asset Service Providers (VASPs) — which include crypto exchanges, trading platforms, wallet service providers, and other businesses that facilitate virtual asset transactions — as well as P2P escrow operators in the country must require and verify users’ tax id before activating accounts.
“VASPs and P2P escrow operators are required to make a valid Tax ID a precondition for account activation in accordance with section 8 of the NTAA,” the guidelines stated.