UAE Implements Retroactive VAT Exemptions for Cryptocurrency Transactions
The United Arab Emirates has introduced amendments to its VAT regulations, significantly affecting tax obligations for companies involved in crypto transactions.
Effective November 15, 2024, these changes clarify VAT provisions, particularly regarding virtual assets. The amendments exempt specific activities related to virtual assets, including ownership transfers and conversions, from VAT retroactively dating back to January 1, 2018.
As a result, businesses must reassess their tax positions and may need to file voluntary disclosures to correct prior VAT returns. This marks a substantial shift in the UAE’s approach to taxing digital and cryptocurrency transactions.
Clever Robot News Desk 8th October 2024
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