UAE Exempts Crypto Transactions From Value Added Tax

Posted by Adrienn Sarkany 6 months Ago

The United Arab Emirates (UAE) has announced a value-added tax (VAT) exemption for cryptocurrency transactions, effective November 15, 2024, and applied retrospectively from January 1, 2018. This update, published by the Federal Tax Authority in both Arabic (October 2, 2024) and English (October 4, 2024), makes it clear that digital asset exchanges and ownership transfers, including cryptocurrency conversions, are exempt from the country’s 5% VAT.

This decision places virtual assets (VAs) in the same category as traditional financial services, many of which are already VAT-exempt. According to Ankita Dhawan, a senior associate at Métis Institute, the exemption legitimizes virtual assets, bringing them further into the mainstream of the UAE’s financial system. This move aligns the country with other global crypto-friendly policies and fosters a more supportive environment for the digital economy.

Source: coindesk.com

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