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UAE VAT Changes: Key Amendments and Updates Explained

The UAE VAT Executive Regulations have undergone a significant overhaul, introducing a series of UAE VAT amendments that will significantly impact how businesses handle their tax compliance. These VAT changes in UAE, most of which come into effect from 15 November 2024, aim to simplify processes, provide clarity, and support evolving sectors like digital assets and financial services.<br>

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UAE VAT Changes: Key Amendments and Updates Explained

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  1. UAE VAT 2025 UAE VAT 2025 WHAT’S NEW AND WHAT WHAT’S NEW AND WHAT YOU NEED TO KNOW YOU NEED TO KNOW

  2. The UAE VAT Executive Regulations have undergone a significant overhaul, introducing a series of UAE VAT amendments that will significantly impact how businesses handle their tax compliance. These VAT changes in UAE, most of which come into effect from 15 November 2024, aim to simplify processes, provide clarity, and support evolving sectors like digital assets and financial services. Below is a detailed guide on the UAE VAT changes and what your business must do to stay

  3. KEY TAKEAWAYS FROM THE 2024 UAE KEY TAKEAWAYS FROM THE 2024 UAE VAT AMENDMENTS VAT AMENDMENTS 1. SIMPLIFIED VAT DOCUMENTATION FOR 1. SIMPLIFIED VAT DOCUMENTATION FOR EXPORT OF GOODS (ARTICLE 30) EXPORT OF GOODS (ARTICLE 30) 2. EXPORT OF SERVICES: NARROWED 2. EXPORT OF SERVICES: NARROWED SCOPE (ARTICLE 31) SCOPE (ARTICLE 31) 3. FINANCIAL SERVICES AND DIGITAL 3. FINANCIAL SERVICES AND DIGITAL ASSETS (ARTICLE 42) ASSETS (ARTICLE 42) 4. COMPOSITE SUPPLIES REDEFINED 4. COMPOSITE SUPPLIES REDEFINED (ARTICLE 46) (ARTICLE 46)

  4. OTHER NOTABLE UAE OTHER NOTABLE UAE VAT AMENDMENTS VAT AMENDMENTS Update Article Article 1 1 New definitions for digital assets & communication 2 2 Real estate supply now includes broader ownership rights 5 5 Deemed supply exceptions for government/charity (≤ AED 250,000) Input VAT on medical insurance now recoverable (spouse + 3 kids under 18) 53 53 59(13)(1) 59(13)(1) Simplified tax invoices must be issued on the date of supply 60 60 Credit notes must detail multiple adjustments and records by agents

  5. WHAT THESE VAT CHANGES IN UAE WHAT THESE VAT CHANGES IN UAE MEAN FOR YOUR MEAN FOR YOUR BUSINESS BUSINESS Sector Sector Impact Summary Impact Summary Exporters Exporters Easier documentation for 0% VAT Financial Financial Services Services Digital Assets Assets Fund management is now VAT-exempt Digital Reassess input VAT due to exemption status Agents Agents Detailed record-keeping for credit notes is mandatory Service Service Providers Providers Narrower scope for zero-rating, esp. in real estate and telecom

  6. KEY CLARIFICATIONS KEY CLARIFICATIONS FROM THE UAE VAT AMENDMENTS 2024 FROM THE UAE VAT AMENDMENTS 2024 1. Export Documentation (0% VAT eligibility) Customs declaration or commercial evidence OR a valid transport certificate 2. Exported Services Must be entirely performed outside the UAE Real estate & telecom exports now have limited eligibility 3. VAT-Free Financial Services Investment funds and digital asset services are now exempt Changes apply retrospectively from 1 Jan 2018 4. Composite Supplies When no main element exists, apply VAT to the total transaction 5. Recoverable Medical Insurance VAT Includes one spouse + 3 kids under 18, even if not legally required 6. Deemed Supply & RCM Minimum deemed supply = AED 500 RCM: No more simplified tax invoices allowed

  7. HOW SHURAA TAX HOW SHURAA TAX CAN HELP CAN HELP At Shuraa Tax, our experts are ready to guide you through the 2025 UAE VAT amendments with customised support: Custom VAT strategy updates Optimise input VAT recovery Review digital asset tax exposure Help comply with composite/deemed supply rules Support RCM invoicing and export documentation

  8. NAVIGATING THE NAVIGATING THE UAE VAT CHANGES UAE VAT CHANGES WITH CONFIDENCE WITH CONFIDENCE The 2024 UAE VAT amendments mark a pivotal shift in the tax landscape, especially for sectors like exports, financial services, and digital assets. With stricter conditions for service exports, updated documentation requirements, and new VAT exemptions, businesses must proactively approach compliance. These changes in VAT UAE streamline some processes and introduce nuanced obligations that require close attention. Whether you’re revising your documentation strategy, reassessing VAT exemptions, or updating invoicing practices, staying informed is crucial.

  9. THANK YOU Contact Us : +(971) 44081900 info@shuraatax.com shuraatax.com 601 Sheikh Zayed Road, 6th Floor, Aspin Commercial Tower – Dubai

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