In a statement, the Federal Tax Authority (FTA) said the amendments, which were made in accordance with Cabinet Resolution No. 100 of 2024, aim to simplify VAT rules, encourage investment, and bring the system in line with international standards.

“The abolition of 5% VAT is expected to benefit virtual asset companies and investment funds, thereby strengthening the UAE’s position as a global financial hub,” the FTA said.
In addition, according to the FTA, the regulator is considering the possibility of refunding previously paid VAT on cryptocurrency transactions, starting from January 1, 2018.