UAE Removes 5% VAT on Crypto Transfers, Retroactive to 2018, Boosting Blockchain Sector

• UAE has removed the 5% VAT fee from most crypto transfers
• Exemption applies to Virtual Asset conversions and transactions
• Eligible businesses can claim a tax return on transfers dating back to January 1, 2018
• The changes will come into effect on November 15, 2024
• VAT exemptions will apply to crypto conversions and transfers
• Businesses can claim back VAT paid on eligible transfers since 2018
• The changes will specifically apply to the management of investment funds, transferring ownership of Virtual Assets, and converting Virtual Assets
• UAE is streamlining tax obligations for Web3 businesses
• UAE introduced a local Virtual Assets Regulatory Authority in March 2022
• The changes will provide relief to local businesses in the blockchain sector

Source: cryptonews.com.au

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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