19/08/2026
๐๐ซ๐ฒ๐ฉ๐ญ๐จ ๐๐ข๐ง๐ข๐ง๐ ๐ข๐ง ๐ญ๐ก๐ ๐๐๐: ๐๐ง๐๐๐ซ๐ฌ๐ญ๐๐ง๐๐ข๐ง๐ ๐ญ๐ก๐ ๐๐๐ ๐๐ซ๐๐๐ญ๐ฆ๐๐ง๐ญ
As cryptocurrency activities continue to evolve, businesses and miners in the UAE should understand how ๐๐๐ ๐๐ฉ๐ฉ๐ฅ๐ข๐๐ฌ ๐ญ๐จ ๐๐ซ๐ฒ๐ฉ๐ญ๐จ ๐ฆ๐ข๐ง๐ข๐ง๐ ๐๐๐ญ๐ข๐ฏ๐ข๐ญ๐ข๐๐ฌ. The VAT treatment mainly depends on whether mining is conducted independently or as a service for another party.
๐๐ข๐ง๐ข๐ง๐ ๐๐จ๐ซ ๐๐จ๐ฎ๐ซ ๐๐ฐ๐ง ๐๐๐๐จ๐ฎ๐ง๐ญ
When a miner uses computing power to validate blockchain transactions without providing services to a specific customer, there is generally ๐ง๐จ ๐ข๐๐๐ง๐ญ๐ข๐๐ข๐๐๐ฅ๐ ๐ซ๐๐๐ข๐ฉ๐ข๐๐ง๐ญ ๐จ๐ ๐ญ๐ก๐ ๐ฌ๐๐ซ๐ฏ๐ข๐๐.
๐น The activity is not treated as a taxable supply.
๐น Mining rewards are therefore generally ๐จ๐ฎ๐ญ๐ฌ๐ข๐๐ ๐ญ๐ก๐ ๐ฌ๐๐จ๐ฉ๐ ๐จ๐ ๐๐๐ ๐๐๐.
๐๐ข๐ง๐ข๐ง๐ ๐๐๐ซ๐ฏ๐ข๐๐๐ฌ ๐๐จ๐ซ ๐๐ญ๐ก๐๐ซ๐ฌ
When mining or computational power is provided to another person in return for a fee:
๐น It is considered a ๐ฌ๐ฎ๐ฉ๐ฉ๐ฅ๐ฒ ๐จ๐ ๐ฌ๐๐ซ๐ฏ๐ข๐๐๐ฌ for VAT purposes.
๐น Services supplied to a UAE customer are generally subject to 5% ๐๐๐.
๐น Services supplied to a non-resident customer may qualify for 0% ๐๐๐, subject to meeting the applicable zero-rating conditions.
๐๐๐๐๐ข๐ฏ๐ข๐ง๐ ๐๐ข๐ง๐ข๐ง๐ ๐๐๐ซ๐ฏ๐ข๐๐๐ฌ ๐๐ซ๐จ๐ฆ ๐๐ฏ๐๐ซ๐ฌ๐๐๐ฌ
Where a UAE business receives mining services from a non-resident supplier:
๐น A VAT-registered recipient generally accounts for VAT under the ๐๐๐ฏ๐๐ซ๐ฌ๐ ๐๐ก๐๐ซ๐ ๐ ๐๐๐๐ก๐๐ง๐ข๐ฌ๐ฆ (๐๐๐).
๐น Where the recipient is not VAT registered, the overseas supplier may have a UAE VAT registration obligation, depending on the applicable rules.
๐๐ง๐ฉ๐ฎ๐ญ ๐๐๐ ๐๐๐๐จ๐ฏ๐๐ซ๐ฒ
VAT incurred on ๐ฆ๐ข๐ง๐ข๐ง๐ ๐๐ช๐ฎ๐ข๐ฉ๐ฆ๐๐ง๐ญ, ๐๐ฅ๐๐๐ญ๐ซ๐ข๐๐ข๐ญ๐ฒ, ๐ซ๐๐ง๐ญ, ๐ฆ๐๐ข๐ง๐ญ๐๐ง๐๐ง๐๐ ๐๐ง๐ ๐จ๐ญ๐ก๐๐ซ ๐ซ๐๐ฅ๐๐ญ๐๐ ๐๐ฑ๐ฉ๐๐ง๐ฌ๐๐ฌ may have different treatment:
๐น ๐๐ฐ๐ง-๐๐๐๐จ๐ฎ๐ง๐ญ ๐ฆ๐ข๐ง๐ข๐ง๐ : Related input VAT is generally not recoverable.
๐น ๐๐ข๐ง๐ข๐ง๐ ๐ฌ๐๐ซ๐ฏ๐ข๐๐๐ฌ ๐๐จ๐ซ ๐๐ฎ๐ฌ๐ญ๐จ๐ฆ๐๐ซ๐ฌ: Input VAT may be recoverable where the costs relate to taxable supplies and the relevant VAT recovery requirements are satisfied.
๐๐จ๐ฐ ๐๐๐ง ๐๐จ๐ซ๐ฉ๐ฏ๐ข๐ ๐๐๐ฅ๐ฉ?
The VAT treatment of digital assets can vary depending on the nature and structure of the transaction.
๐๐จ๐ซ๐ฉ๐ฏ๐ข๐ ๐
๐๐ ๐๐๐ can help you assess your crypto activities, determine the correct VAT treatment, review input VAT eligibility, and maintain compliance with UAE VAT regulations.
๐๐จ๐ซ๐ฉ๐ฏ๐ข๐ ๐
๐๐ ๐๐๐
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