UAE VAT Law Updated

The UAE Cabinet approved Decision No. 100 of 2024, which amended certain provisions of the Executive Regulation of Federal Decree-Law No. 8 of 2017 on Value-Added Tax (VAT). The amendments aim to simplify VAT procedures, align with international best practices, and minimize misunderstandings of the law.

The updated Law exempts the following areas from VAT:

• investment fund management services provided by independent fund managers to funds licensed by a UAE competent authority;

• financial services related to virtual assets, including:

• transfer of ownership of virtual assets, including virtual currencies;

• conversion of virtual assets;

• management and control over virtual assets;

• in-kind donations between charitable and government entities up to AED 5 million over a 12-month period.

Amendments are also made to strengthen tax compliance by listing certain cases in which the Federal Tax Authority may deregister VAT payers:

• a taxpayer does not expect to make any such supplies of goods and services over the next 12-month period;

• the value of supplies of goods and services over the previous 12 (twelve) months is less than the Voluntary Registration Threshold and will not exceed this threshold within the next 30 days.

The amendments entered into force on November 15, 2024.

Executive Regulation of Federal Decree-Law No. 8 of 2017