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UAE Tax Authority to Levy VAT on Crypto Mining Service Providers
UAE Tax Authority to Levy VAT on Crypto Mining Service Providers
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The UAE Federal Tax Authority (FTA) has clarified that cryptocurrency mining service providers will be subject to a 5% Value Added Tax (VAT). Individuals mining cryptocurrencies for themselves will not incur VAT, but those offering mining services to others will be required to pay the tax. The FTA defines cryptocurrency mining as the process of validating blockchain transactions using specialized computers, with potential rewards for contributing computational power. Additionally, input tax on expenses such as hardware purchases and real estate rentals is non-recoverable for individual miners.
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