The UAE will exempt all cryptocurrency transactions from Value Added Tax (VAT) starting November 15, 2024, as confirmed by the Federal Tax Authority (FTA). This change, part of broader VAT reforms, allows crypto activities to proceed without VAT, retroactive to January 1, 2018, enabling businesses to adjust past filings.

In addition, the UAE has revised VAT regulations for exports, simplifying documentation requirements for exporters while restricting exported services to those not conducted within the UAE or designated zones. VAT exemptions will also apply to managing investment funds and transferring virtual assets, benefiting fund managers.

Businesses in the cryptocurrency sector must review their VAT obligations under this new framework and may need to submit voluntary disclosures for previous tax filings. These amendments highlight the UAE's commitment to modernizing its tax system for emerging industries.

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