Cabinet Decision No. 100 of 2024: Amendments to UAE VAT Regulations

UAE, 14 March, 2025 : The UAE Federal Tax Authority (FTA) has announced significant amendments to the Executive Regulation of the Federal Decree-Law No. 8 of 2017 on Value Added Tax (VAT), effective from November 15, 2024. These changes, outlined in Cabinet Decision No. 100 of 2024, aim to clarify and enhance the existing VAT framework.

Key Changes:

1. New Definitions: The regulation introduces definitions for terms such as "business day" and "standard rate," aligning with the Tax Procedures Law. A new definition for "virtual assets" has also been established, specifically excluding digital representations of fiat currency.

2. Supply of Goods: Clarifications have been made regarding the disposal of real estate, confirming that such transactions are considered a supply of goods.

3. Exceptions and Deregistration: New provisions outline exceptions for government entities regarding the transfer of ownership of government buildings and assets, which will not be considered taxable supplies. Additionally, the FTA can now deregister individuals who fail to complete the deregistration process.

4. Zero-Rating Provisions: The amendments specify conditions for zero-rating exports of goods and services, including international transportation services. Notably, the zero-rating for certain means of transport has been clarified to include both supply and importation.

5. Healthcare and Financial Services: The regulation expands zero-rating provisions for healthcare services and introduces new categories of exempt financial services, including the management of investment funds and the transfer of virtual assets.

6. Tax Invoices and Credit Notes: The requirements for issuing tax invoices have been updated, emphasizing that only registrants can issue such invoices. New rules regarding the treatment of multiple tax credit notes have also been established.

7. Input Tax Recovery: The amendments clarify the conditions under which employers can recover input tax related to employee health insurance, allowing recovery regardless of legal obligations.

The FTA emphasizes that these amendments do not alter existing legislation but rather clarify the application of VAT regulations. Stakeholders are encouraged to review the changes to ensure compliance with the updated VAT framework.