Major VAT Changes by FTA: New Rules on Digital Assets Effective from Nov 15, 2024- Part 1

The FTA has introduced significant changes to VAT regulations, effective from November 15, 2024. These changes focus on the growing impact of digital assets such as cryptocurrencies, security tokens, and e-money tokens. Under Article 1, a digital asset is defined as a digital representation of value that can be traded or used for investment purposes, excluding fiat currencies and financial securities.

The key reform exempts investment fund management services and the trading or converting of digital assets from VAT, according to Article 42(3). However, individuals or entities managing and holding digital assets will now be liable for VAT. It’s crucial to understand that these changes trace back to January 1, 2018, for certain activities, with more guidelines expected soon. Subscribe for the full breakdown of these new regulations and how to prepare for compliance.
Captions:
Rishita: FTA has made too much changes in VAT.. and major changes are applicable from 15 Nov 2024, There is very short time to implement,
Rishita: Is there any series of changes
Rishita: Very relevant information ,, tell me more about other changes ?

Abhi : Don’t worry , just follow ACTA, with every small change in very simple words
Abhi Yes..so now lets start
Important change is introduction of Digital asset under Article 1 .. which says digital asset is Digital representation of value that can be digitally traded or converted and can be used for investment purposes, and excluding fiat currencies or financial securities.

Examples, Cryptocurrency, Security tokens, E money token and many more

note that Investment fund management services,
Trading or converting of digital assets are exempt from VAT under article 42(3) but the person who is managing and keeping virtual assets are under ambit of VAT. Remember trading or converting of Digital assets changes are applicable from January 1, 2018.

Abhishek : Wait for second part of series and don’t forget to subscribe.

----------
Subscribe for the Next Part of Video
#vatupdate2024 #vatuae #valueaddedtax #uaevat #taxtips #digitalassets #cryptocurrency #cryptocurrencynews #financetips #taxreforms #fta #ftachanges #financeuae #taxcompliance #vatdigitalassets #investmentfundmanagement #uaeregulations #finance #taxnews #businessupdate #trendingnews #economy #digitaltransformation #businessgrowth #businessstrategy #businesscompliance #businesstax #amendments