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The UAE’s Federal Tax Authority issued new VAT guidance in January 2025, clarifying tax obligations for cryptocurrency miners and distinguishing between personal mining and mining services provided to others.
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Personal mining without a service recipient isn’t taxable, and related input VAT on expenses like equipment and electricity isn’t recoverable under UAE crypto VAT regulations.
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Mining services for others are taxable: domestic clients incur 5% VAT, while international clients may qualify for zero-rating if specific Executive Regulation conditions are met.
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Maintaining detailed records, proper documentation, and consulting crypto tax professionals are crucial for compliance with evolving UAE cryptocurrency VAT laws and maximizing input VAT recovery opportunities.
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