UAE issues VAT amendments to exempt cryptocurrency transfers and exchanges from VAT

According to Foresight News , Cointelegraph reported that the UAE Federal Tax Authority (FTA) issued an amendment to the Value Added Tax (VAT) regulations on October 2, which will exempt the transfer and exchange of virtual assets (including cryptocurrencies) from VAT. The move aims to make the UAE a more friendly jurisdiction for digital asset transactions. According to PwC's interpretation, the new regulations will provide VAT exemptions for additional services, including investment fund management and the transfer and exchange of virtual assets. These exemptions will be retroactive to January 1, 2018. The UAE defines virtual assets as "value representations that can be digitally traded or exchanged and can be used for investment purposes", but does not include legal tender or financial securities.