- The UAE FTA has introduced a new binding guidance type, “Directives on Tax Transactions,” which sets VAT treatment for specific transactions.
- Unlike Public Clarifications, these Directives are binding on both taxpayers and the FTA and remain in force until replaced, withdrawn, or superseded by law.
- In 2026, the FTA issued five VAT Directives covering judicial expert services, VAT group exit adjustments, digital currency conversion, life insurance/reinsurance fees, and deemed supplies of services.
- Directive No. 2 of 2026 has an effective date of 1 August 2026; the other four Directives do not yet have separate confirmed effective dates.
- Businesses should check whether any Directive applies to them and update VAT treatment, invoicing, accounting, and systems if needed.
Source: fiscal-requirements.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.
