18 August 2026 · VAT Exemption
Crypto VAT Exemption
Under Cabinet Decision No. 100 of 2024, the transfer and conversion of virtual assets, and the management of qualifying investment funds, are exempt from VAT, with the virtual-asset provisions applying retroactively from 1 January 2018. That backdating is unusual: a crypto business that charged or recovered VAT on these supplies in earlier years may need to file voluntary disclosures to correct its returns. The trade-off is that exempt is not zero-rated, so input VAT on the costs that generate these supplies is generally not recoverable and becomes a real cost. Map your supplies carefully and quantify the trapped input VAT before you assume the exemption is purely good news.
Exiloz Management & Tax Consultant · Dubai-based FTA-focused advisory · VAT, corporate tax & accounting
Virtual-asset supplies
Transfers and conversions.
- Transfer of virtual assets exempt.
- Conversion of virtual assets exempt.
- Qualifying fund management exempt.
- Under Cabinet Decision 100 of 2024.
Retroactive to 2018
History may need correcting.
- Applies from 1 January 2018.
- Past returns may be wrong.
- Voluntary disclosures to fix them.
- Review earlier VAT positions.
No input recovery
Exempt blocks reclaims.
- Exempt, not zero-rated.
- Input VAT on related costs not recoverable.
- It becomes a cost in overheads.
- Quantify it in your model.
Frequently Asked Questions
For the crypto VAT position.
Is crypto exempt from VAT in the UAE?
Yes. Transfers and conversions of virtual assets are exempt under Cabinet Decision 100 of 2024, retroactively from 1 January 2018.
Why does the 2018 date matter?
The exemption is backdated, so a business that handled VAT differently in earlier years may need to file voluntary disclosures to correct past returns.
Can I recover input VAT?
Generally no for costs tied to exempt supplies. Because the supplies are exempt rather than zero-rated, that input VAT is usually not recoverable and becomes a cost.
Does the exemption cover fund management?
It covers the management of qualifying investment funds, alongside the virtual-asset transfer and conversion exemption.
What should I do about past returns?
Review your historical VAT treatment against the retroactive exemption and file voluntary disclosures where corrections are needed.
Can Exiloz review my crypto VAT?
Yes. We map your supplies, quantify the unrecoverable input VAT, and handle any voluntary disclosures.
Map your crypto VAT
Exiloz reviews your supplies and fixes historical VAT.