The United Arab Emirates (UAE) has recently exempted cryptocurrency transactions from Value Added Tax (VAT), elevating the status of cryptocurrencies closer to traditional financial services. This tax exemption law came into effect on November 15th and applies retroactively to transactions made since January 1st, 2018. Previously, all cryptocurrency transactions, whether buying, selling, or transferring, were subject to a 5% VAT. However, with this new law, such transactions are now exempt from this tax.
Source: CoinDesk
TLDR: UAE exempts cryptocurrency transactions from VAT, enhancing their status in the financial sector.
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