Businesses Can Reclaim VAT Costs from Past Crypto Transactions with New Exemptions

• UAE has removed VAT on cryptocurrency transactions
• Companies that have used virtual assets need to reassess VAT on transactions since January 1, 2018
• There is a chance for companies to reclaim VAT costs from past cryptocurrency transactions
• Virtual asset based transactions are now considered exempt supplies for VAT in the UAE
• Eligible VASPs can reclaim VAT paid on eligible virtual asset services from January 1, 2018
• Companies must submit documentation and information to the FTA for review to claim the refund
• The new rules come into effect on November 15, 2024
• VASPs may face challenges in reclaiming VAT from past transactions due to the complexity of the process.

Source: gulfnews.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.

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