UAE Approves Amendments to VAT Executive Regulations to Boost Transparency and Economic Growth

UAE, 12 December, 2024 : The UAE Ministry of Finance has announced Cabinet Decision No. 100 of 2024, amending provisions of the Executive Regulations of Federal Decree-Law No. 8 of 2017 on Value Added Tax (VAT). The updates aim to enhance transparency, align regulations with market needs, and support economic growth.

The amendments, developed in line with international best practices and the GCC Unified VAT Agreement, address challenges faced by businesses and incorporate stakeholder feedback. Key changes include exempting investment fund management services and certain virtual asset-related services from VAT to boost investment and innovation.

In-kind donations between charitable and government entities, valued up to AED 5 million annually, are also exempted, allowing donors to recover VAT. This move is intended to support societal contributions and ease the burden on these entities.

The Federal Tax Authority has been granted the authority to deregister taxpayers in specific cases, strengthening tax compliance and improving administration.

HE Younis Haji Al Khoori, Undersecretary of the Ministry of Finance, emphasized the amendments’ role in simplifying tax procedures, promoting economic growth, and enhancing the UAE's investment climate.