Chainalysis
October 7, 2024
Chainalysis Unicorn News - October 07, 2024
The UAE has announced a significant policy change, exempting cryptocurrency transactions from the value-added tax (VAT) starting November 15, 2024. This strategic move aims to strengthen the UAE's position as a leading hub for blockchain and cryptocurrency activities.
() Introduction
() UAE Exempts Crypto Transactions From VAT Starting November
The United Arab Emirates' Federal Tax Authority has announced a pivotal change in the taxation policy for cryptocurrency transactions. Effective November 15, 2024, these transactions will be exempt from the 5% value-added tax (VAT) that was previously applicable. This policy shift, announced on October 2, 2024, and translated into English by October 4, 2024, is part of the UAE's broader strategy to establish itself as a premier hub for blockchain and cryptocurrency activities. By exempting crypto transactions from VAT, the UAE aligns them with other VAT-free traditional financial services, thereby reducing financial barriers and encouraging increased investment in the crypto sector. Moreover, the exemption will be applied retroactively to transactions dating back to January 1, 2018. This retroactive application is significant as it could have substantial financial implications for businesses and investors who have been active in the UAE's cryptocurrency market over the past years. This move underscores the UAE's commitment to fostering a supportive economic environment for cryptocurrency investments and operations, potentially leading to heightened activity and growth within the sector. This policy change may also influence the global cryptocurrency landscape, as it could set a precedent for other countries considering similar measures to attract crypto investments.
Sources
1 https://techreport.com/crypto-news/uae-exempts-crypto-transactions-and-conversions-from-vat/
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