- FTA issued VAT public clarification VATP039 on Crypto currency mining
- Key areas covered in the clarification include:
- Definition of mining of crypto currency
- Implications of mining crypto for a person’s own account
- Implications of mining crypto on behalf of another person
- Implications of mining services received from Non-Resident person
- Mining of crypto currency involves specialized computers validating block chain transactions for a reward
- Mining for own account is not considered a taxable supply under UAE VAT
- Mining on behalf of another person is considered a taxable supply of services
- VAT implications for mining services received from Non-Resident person
- Input VAT on personal mining expenses cannot be recovered as they are not for making taxable supply
Source: pkfuae.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.
