🇦🇪UAE's Approach to #Crypto & #VAT

The UAE is establishing clear guidelines for incorporating #cryptocurrency into its #VAT framework. Here’s what you need to know about the intersection of digital assets and tax law in one of the world’s leading crypto hubs: 

🔸 Key Framework:

- VAT applies when cryptocurrency is used for goods or services.
- These transactions are classified as barter transactions.
- Businesses must calculate #VAT based on the AED value at the time of the transaction.
- The standard #VAT rate is 5%.

Since its introduction in 2018, the UAE's #VAT system has played a vital role in diversifying the economy beyond oil revenues. Now, it is being adapted for the digital age, including #cryptocurrencies and digital assets.
#Crypto #VAT #cryptocurrency #VAT