- Key Changes in VAT Classification and Taxation: The new VAT law clarifies the classification of cryptocurrencies for tax purposes, defining them as investment assets, payment instruments, or government-linked digital assets, each with distinct tax implications. It introduces “deemed sales” rules for self-consumed goods and services, while removing restrictions on input VAT from loan interest, enhancing creditability for taxpayers.
- Regulatory Adjustments for Mixed Sales and VAT Invoices: The law amends the treatment of mixed sales by applying the VAT rate of the principal element instead of the taxpayer’s main business activities. It also validates electronic VAT invoices as equivalent to paper invoices, promoting digitalization in VAT processes.
- Future Compliance and Regulatory Monitoring: With the VAT law set to take effect in 2026, taxpayers are encouraged to monitor forthcoming implementing regulations that will address key issues like input VAT credit limitations and preferential policies for small businesses, ensuring they remain compliant and strategically prepared for changes in the VAT landscape.
Source: taxathand.com
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.
