United Arab Emirates Tax Agency Clarifies VAT Treatment of Cryptocurrency Mining

The Emirati Federal Tax Authority Jan. 14 issued Public Clarification No. VATP039, clarifying the VAT treatment of cryptocurrency mining. The clarification includes that: 1) mining cryptocurrency for one’s own account is not considered a taxable supply and is not subject to VAT; 2) mining on behalf of another person, which involves supplying computational power, is considered a taxable supply of services; 3) input tax on expenses for mining on one’s own account is not recoverable, while input tax incurred by a person with a tax registration number (TRN) for mining on behalf of another person may be recoverable if the ...