- Changes to UAE’s Executive Regulations regarding VAT exempt virtual assets and investment fund management services
- Transfer of ownership of virtual assets considered financial service and exempt from VAT
- Exemption applies retroactively from January 1, 2018
- VAT-exempt treatment for virtual assets aligns with financial services
- Businesses relieved from charging 5% VAT on crypto transactions
- Limit on VAT recovery of business expenses
- Businesses may need to reassess VAT obligations for relevant years
- VAT exemption for management of investment funds provided to UAE-licensed funds
- Helps domestic funds manage VAT costs associated with fund management fees
- Encourages establishment of new funds.
Source: bdo.global
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
