The VAT exemption will come into effect on 15 November 2024 and will apply retroactively to transactions from 1 January 2018.
The VAT exemption allows the UAE to sell crypto assets (virtual currencies) to traditional currencies.
This shows that the regulatory authorities are treating it in the same context as financial products and are trying to create an appropriate tax environment.
The EU Consumer Tax (ECT) is an indirect tax levied on the purchase of goods and services between EU member states, equivalent to the Japanese consumption tax.
In the UAE, a 5% value-added tax (VAT) will be introduced from January 2018, and this portion is expected to be exempt from tax.
Accounting and consulting firm providing tax, audit and consulting services
According to the official website of the Middle East and North Africa region of financial services firm PwC, the report mentions a review of the VAT exemption for financial services and virtual assets, including crypto assets, and amendments to export regulations.
Regarding the tax treatment of financial services, the following items have been designated as exemptions: - Investment fund management
・Transfer of ownership of virtual assets (including crypto assets) (remittance) ・Exchange between crypto assets
The definition of assets is thought to include not only cryptocurrencies but also other digital assets such as NFTs (non-physical tokens).
On the other hand, it is defined as "a digital representation of value that can be traded or exchanged digitally and used for investment purposes," and is not a digital equivalent of legal tender or financial securities.
The bill stipulates that the use of "two-level" expressions is excluded, and that CBDCs (central bank digital currencies), fiat-collateralized stable coins, electronic currencies, digital securities (STs), etc. may be excluded from the exemption.
It is possible.
2024/10/08 13:14 KST
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