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Major changes to UAE's VAT rules impact fund managers and virtual asset traders - All you need to know

The article from Arabian Business discusses significant changes to the UAE's Value Added Tax (VAT) rules that will impact fund managers and virtual asset traders. Effective from January 1, 2023, these changes include the introduction of a reverse charge mechanism for certain supplies, which means that the recipient of the supply, rather than the supplier, will be responsible for accounting for VAT. This is particularly relevant for services provided by foreign fund managers to UAE-based funds, where the UAE fund will now account for VAT. Additionally, the treatment of virtual assets like cryptocurrencies has been clarified; trading in virtual assets is now considered an exempt supply, meaning no VAT is charged on these transactions. However, this exemption could lead to input VAT recovery issues for businesses dealing in virtual assets. The changes aim to align the UAE's VAT framework more closely with international standards, potentially simplifying compliance for multinational entities but also introducing new complexities in VAT management for local businesses.

Read the Full Arabian Business Article at:
[ https://www.arabianbusiness.com/industries/banking-finance/major-changes-to-uaes-vat-rules-impact-fund-managers-and-virtual-asset-traders-all-you-need-to-know ]