- The UAE FTA issued VAT Public Clarification VATP039 on January 14, 2025, providing guidance on VAT implications for cryptocurrency mining.
- Cryptocurrency mining is defined as validating blockchain transactions for a cryptocurrency using computational resources.
- Mining on a personal account is not subject to UAE VAT.
- Mining services provided to others are considered a taxable supply.
- If the recipient is based in the UAE, VAT at 5% applies.
- For services provided to non-resident recipients, the supply may qualify for zero-rating.
- The VAT treatment of cryptocurrency mining has been clarified, but uncertainties remain regarding its classification under the UAE CIT framework.
- Businesses and individuals involved in cryptocurrency mining must ensure compliance with VAT regulations.
- Individuals mining for personal purposes remain outside the scope of VAT but should monitor further developments regarding CIT implications.
Source: mailchi.mp
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.
