Cryptocurrency transactions in the United Arab Emirates (UAE) will be exempt from value-added tax (VAT) starting next month, according to accounting giant PricewaterhouseCoopers (PwC).
The accounting giant says the UAE’s Federal Tax Authority (FTA) issued amendments earlier this month exempting crypto transfers from VAT fees.
“Additional services are exempt from VAT:
Management of investment funds
Transfer of ownership of virtual assets, including cryptocurrencies
Conversion of virtual assets.
According to PwC, the VAT exemption for crypto transactions is effective from January 1, 2018.
The amendments exempting crypto transactions from paying VAT come about a month after the UAE’s Securities and Commodities Authority (SCA) and Dubai’s Virtual Assets Regulatory Authority (VARA) signed an agreement aimed at strengthening the global position of the country in the cryptocurrency sector.
“As part of the agreement, the SCA and VARA will establish rules and procedures for the licensing and supervision of virtual asset service providers (VASPs) and any associated activities, services or transactions…
Both parties have agreed that VASPs operating in/from Dubai, or wishing to serve the Emirate of Dubai, must obtain a license from VARA and can be registered by default with the SCA to serve the entire UAE. VASPs wishing to operate from any other Emirates must be approved by the SCA to do so.
The agreement covers the mutual monitoring mechanism of VASPs, the imposition of sanctions and fines, the exchange of information and statistics, as well as cooperation in training and qualification of employees.
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Disclaimer: Opinions expressed on The Daily Hodl do not constitute investment advice. Investors should conduct due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and transactions are at your own risk and any losses you may incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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