VAT Treatment of Cryptocurrency Mining in the UAE: Public Clarification No. VATP039 (Jan. 14)

• Emirati Federal Tax Authority issued Public Clarification No. VATP039 on Jan. 14
• Mining cryptocurrency for one’s own account is not taxable
• Mining on behalf of another person is considered a taxable supply of services
• Input tax on expenses for mining on one’s own account is not recoverable
• Input tax for a person with a TRN for mining on behalf of another person may be recoverable
• Taxable supplies in the UAE are subject to 5% VAT
• Exemptions or zero-rating may apply to taxable supplies

Source: news.bloombergtax.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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