Starting from November 15, 2024, the UAE will exempt cryptocurrency transactions and conversions from Value Added Tax (VAT), applicable to both individuals and businesses. This progressive approach sets the UAE apart as other nations maintain cautious stances on clear cryptocurrency regulations.
Prior to this tax exemption, the UAE imposed a 5% VAT on cryptocurrency transactions, similar to other commercial transactions. However, taxing cryptocurrencies posed challenges due to their decentralized and anonymous nature. Previous tax regulations created barriers for businesses and individuals looking to enter the crypto market.
The new tax exemption policy aims to foster growth and attract investment in the cryptocurrency sector. The Federal Tax Authority (FTA) of the United Arab Emirates issued revised VAT regulations on October 2, stating that cryptocurrency-related transactions, including transfers and conversions, will no longer be subject to VAT in the UAE.
