The UAE’s Federal Tax Authority has updated its value added tax (VAT) regulations, stating that transfers and conversions of digital assets, including cryptocurrencies, will now be exempt.
This update was published on October 2 and includes exemptions for the management of investment funds and the transfer and conversion of virtual assets.
These exemptions will apply retroactively from January 1, 2018.
Business consulting firm PwC clarifies that this definition of virtual assets does not include fiat currencies or financial securities.
The Virtual Asset Regulatory Authority (VARA) in Dubai and the Securities And Commodities Authority (SCA), the federal financial agency of the UAE, reached an agreement on jointly overseeing virtual asset service providers (VASPs) on September 9.