The post UAE Implements New VAT Amendments, Exempt Crypto appeared on BitcoinEthereumNews.com.

The UAE has implemented amendments to its Value-Added Tax (VAT) regulations. The new amendments will exempt the transactions and conversions of crypto assets from VAT. The FTA has urged crypto businesses in the country to review their retrospective VAT position. The United Arab Emirates (UAE) made crypto transactions and conversions VAT-free with amendments to its Value-Added Tax (VAT) regulations. This change, effective January 1, 2018, solidifies the UAE’s position as a leading crypto hub. The UAE’s Federal Tax Authority (FTA) issued the VAT amendments on October 2, 2024. Tax consultancy firm PwC noted that the UAE defines cryptocurrencies as “representations of value that can be digitally traded or converted.” The auditing firm added that this category excludes financial securities and fiat currencies. Bitcoin enthusiast Kyle Chasse called the development “bullish.” He said the UAE’s move to eliminate VAT for crypto transfers is “huge” for both individual and institutional investors. BULLISH!! 🇦🇪 UAE ELIMINATES VAT (VALUE-ADDED TAX) FOR ALL CRYPTO TRANSFERS. THIS IS HUGE FOR PEOPLE AND COMPANIES DEALING WITH DIGITAL ASSETS! DON’T YOU DARE SAY YOU’RE BEARISH. pic.twitter.com/5HlzKl6wcT — Kyle Chassé / DD🐸 (@kyle_chasse) October 6, 2024 The FTA encouraged crypto businesses in the country to review their retrospective VAT position under the new amendments and focus on input tax recovery. PwC indicated that virtual asset companies may need to submit voluntary disclosures to correct past VAT returns. UAE tax company Finanshels previously stated that registered businesses in the UAE can reclaim previously paid Value-Added Tax (VAT) through the Input Tax Recovery mechanism. UAE Strengthens Crypto Regulations UAE has led the way in implementing strong crypto regulations that support its goal of expanding its crypto hub. Coinbase CEO Brian Armstrong recognized the UAE as the first country to establish a specialized crypto regulator. The UAE’s progressive stance on crypto is…

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Filed under: News - @ October 7, 2024 7:28 am