Understanding VAT on Crypto Mining in the UAE

With the rise of cryptocurrencies, the UAE’s Federal Tax Authority has clarified the VAT treatment for crypto mining: 

– Mining for Personal Use – Falls outside the scope of VAT, as it’s not considered a taxable supply. 

– Mining for Others – Providing computational power in exchange for a fee is taxable under VAT. 

– Input Tax Recovery – Not allowed for personal mining but may be recovered if mining services are supplied as a taxable business. 

This clarification ensures compliance and transparency in the evolving digital economy.