The UAE’s Ministry of Finance has announced that the UAE Cabinet has approved Decision No. 100 of 2024, which introduces amendments to the Executive Regulations of Federal Decree-Law No. 8 of 2017 concerning Value Added Tax (VAT).
These changes are designed to enhance transparency and ensure compliance with UAE tax legislation. They also aim to balance tax revenue collection with boosting the investment climate, making the UAE more attractive to investors.
“The Ministry is committed to coordinating with relevant stakeholders from both the public and private sectors and working to update our regulations to enhance the UAE’s business environment,” said Younis Haji Al Khoori, Undersecretary of the Ministry of Finance.
The amendments align with international best practices and consider the GCC Unified VAT Agreement, past experiences, and stakeholder feedback. They include exemptions for investment fund management services and certain virtual asset services from VAT, promoting growth in these sectors.
Additionally, in-kind donations between charitable and government entities, up to Dh5 million over a 12-month period, will be exempt from VAT regulations, easing the burden on these entities.
Furthermore, the amendments grant the Federal Tax Authority the power to deregister taxpayers in specific cases, enhancing tax compliance and administration efficiency.
