UAE has set up clear guidelines for crypto and Value-Added Tax (VAT) framework.
Crypto-to-crypto transactions have been exempted from VAT.
Personal mining and purchase of goods have also been exempted from VAT.
The United Arab Emirates (UAE) has become a welcoming destination for crypto companies, adopting a more crypto-friendly stance than the United States or the European Union. The country has also established clear guidelines for how crypto assets are treated under its Value-Added Tax (VAT) system.
Introduced in 2018, the VAT system has played a key role in the UAE’s economic development by providing revenue streams beyond oil trade. The VAT policies have been extended to the digital asset sector, with VAT applied when crypto is used to pay for goods and services.
These transactions are classified as barter transactions with a standard 5% VAT rate. Businesses must calculate VAT based on the AED value at the time of the transaction.
EXPLAINED: UAE's Approach to Crypto & VAT
The UAE is setting clear guidelines for how cryptocurrency fits into its VAT framework. Here's what you need to know about the intersection of digital assets and tax law in one …
The post UAE’s Crypto-Friendly VAT System Attracts Global Companies appeared first on Coin Edition.
