top of page

UAE exempts cryptocurrency transactions from VAT

Writer's picture: P2B AdminP2B Admin
UAE exempts cryptocurrency transactions from VAT


The UAE has reportedly exempted cryptocurrency transactions from value-added tax (VAT), aligning the sector with traditional financial services that enjoy similar exemptions. This regulatory change, effective from November 15, 2024, and applied retrospectively to transactions dating back to January 1, 2018, was publicly communicated in Arabic on October 2 and in English on October 4. For the first time, this exemption clearly states that VAT does not apply to digital assets, covering both the exchange and transfer of ownership. Consequently, all cryptocurrency transfers and conversions are now free from the 5% VAT levy.


Ankita Dhawan, a senior associate at the Métis Institute, highlighted that the UAE's classification of virtual assets alongside traditional financial services not only exempts them from VAT but also legitimizes their status within the financial ecosystem. This move is expected to bolster the attractiveness of the UAE as a crypto-friendly jurisdiction, enhancing the legitimacy and appeal of virtual assets for investors and businesses operating within the region.


Source: CoinDesk

0 views0 comments

Comments


Download full report Partner Ecosystem Trends: 2019-2024

Download now

bottom of page