UAE FTA Issues VAT Conversion Rules for Digital Currency Transactions

The UAE FTA issued Directive No. 3 of 2026 to standardize how digital currency is converted into AED for VAT purposes.
It applies to businesses supplying digital currency or receiving payment for goods/services in digital currency.
Taxpayers must choose three approved exchange platforms and use them consistently for the entire calendar year; the AED value is based on the average of the three rates at the exact time of supply or receipt.
Businesses must keep timestamped records of the selected exchange rates to support VAT filings and FTA audits.
The directive aims to prevent selective rate use and improve consistency; further guidance will cover missing rates, and historic crypto VAT adjustment/refund claims for 2018–2020 close on December 31, 2026.

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.