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 compliant.
Key Takeaways from the 2024 UAE VAT Amendments
1. Simplified VAT Documentation for Export of Goods (Article 30)
Companies can apply the 0% VAT rate on exports with less paperwork.
| Requirement Type | Previous Requirement | New Requirement (from 15 Nov 2024) |
| Documentation | Customs + Commercial Evidence | Customs declaration or commercial evidence |
| Proof of Transport | Customs + Transport Documents | Transport certificate or customs declaration with suspended duties |
New Definitions:
- Official Evidence: Validated export proof
- Commercial Evidence: Invoices, contracts, etc.
- Delivery Certificate: Confirmation of goods movement
2. Export of Services: Narrowed Scope (Article 31)
While 0% VAT still applies to exported services, the conditions are stricter:
| Service Type | Old Condition | New Condition |
| Services Abroad | Automatically zero-rated | Must not be performed in UAE or Designated Zones |
| Real Estate, Telecom, etc. | Broad zero-rating | Now under strict, case-based rules |
Article 31(3)(b) introduces anti-avoidance measures to prevent VAT abuse.
3. Financial Services and Digital Assets (Article 42)
Some of the most significant UAE VAT changes affect the financial sector and digital asset businesses:
| Service Type | Previous VAT Treatment | New VAT Treatment |
| Investment Fund Management | Standard VAT | Exempt |
| Digital Assets / Crypto | Standard VAT | Exempt |
Virtual assets now include all digital tokens (excluding fiat and securities). Services like custody, transfer, and conversion are VAT-exempt.
4. Composite Supplies Redefined (Article 46)
When no single component dominates, the entire supply is taxed as one:
| Scenario | Old VAT Treatment | New VAT Treatment |
| Bundled Goods + Services | Separately taxed | Single VAT rate on the total |
Other Notable UAE VAT Amendments
| Article | Update |
| 1 | New definitions for digital assets & communication |
| 2 | Real estate supply now includes broader ownership rights |
| 5 | Deemed supply exceptions for government/charity (≤ AED 250,000) |
| 53 | Input VAT on medical insurance now recoverable (spouse + 3 kids under 18) |
| 59(13)(1) | Simplified tax invoices must be issued on the date of supply |
| 60 | Credit notes must detail multiple adjustments and records by agents |
What These VAT Changes in UAE Mean for Your Business
| Sector | Impact Summary |
| Exporters | Easier documentation for 0% VAT |
| Financial Services | Fund management is now VAT-exempt |
| Digital Assets | Reassess input VAT due to exemption status |
| Agents | Detailed record-keeping for credit notes is mandatory |
| Service Providers | Narrower scope for zero-rating, esp. in real estate and telecom |
Key Clarifications 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
How Shuraa Tax 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
Navigating the UAE VAT Changes 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.
Shuraa Tax is here to simplify your compliance journey. Our VAT experts provide customised solutions to help your business easily and accurately adapt to every new requirement.
Contact us today for personalised assistance:
📞 Call: +(971) 44081900
💬 WhatsApp: +(971) 508912062
📧 Email: info@shuraatax.com
