By Cabinet Decision No. 100 of 2024, changes were introduced to the UAE’s VAT collection system, as reported by the Federal Tax Authority. The amendments affect areas such as crypto-assets and investment fund management.
In particular, VAT exemptions apply to services provided by fund managers to licensed funds. These services include:
• fund operations management;
• investment management for the fund or on its behalf;
• monitoring and improving the fund’s performance.
In the field of cryptocurrencies, “the transfer and conversion of virtual assets, such as digital currencies” will be exempt from VAT.
The VAT changes regulated by Decision No. 100 also include a revision of export rules for goods and services and clearer definitions of supply-related terms. Charitable and government organizations will also receive VAT exemptions on certain donations worth up to 5 million dirhams.
The changes will come into effect on October 15.
