VAT Treatment of Cryptocurrency Mining in the UAE

• Cryptocurrency mining for personal use is not subject to VAT.
• Mining for others is a taxable service subject to 5% VAT.
• Self-mining for personal use is not a taxable supply, and VAT on expenses is not recoverable.
• Providing computational power for mining is a taxable service, subject to 5% VAT unless zero-rated.
• Businesses offering mining services must register for VAT and charge VAT on fees received.
• VAT recovery eligibility depends on whether mining is conducted for personal use or for third parties.
• Businesses and individuals engaged in cryptocurrency mining in the UAE should assess VAT liability, maintain clear records, and understand VAT recovery rules.

Source: bsalaw.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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