Ministry of Finance announces amendments to Executive Regulations of Federal Decree-Law on Value Added Tax

The Ministry of Finance announced that the UAE Cabinet has approved Decision No. 100 of 2024, which amends certain provisions of the Executive Regulations of Federal Decree-Law No. 8 of 2017 on Value Added Tax (VAT).
The Ministry emphasised that these amendments reflect its ongoing commitment to enhancing transparency within the overall and indirect tax regime, ensuring full compliance with UAE tax legislation by taxpayers.
The Ministry also highlighted that the changes are part of continuous efforts to refine the tax environment in the UAE, aiming to strike a balance between collecting tax revenues, boosting the investment climate, and attracting more businesses and investors to the country.
Younis Haji Al Khoori, Undersecretary of the Ministry of Finance, said: “The Ministry is committed to coordinating with relevant stakeholders from both the public and private sectors and working to update our regulations to enhance the UAE's business environment.”
“We believe these amendments will help minimise misunderstandings or incorrect applications of the law, as well as simplify procedures for taxpayers in line with international best practices, ultimately contributing to an improved quality of life for all.”
The amendments were designed in accordance with international best practices, taking into account the GCC Unified VAT Agreement, past experiences, challenges faced by the business community, and stakeholder recommendations.
Amid ongoing economic transformations, the Ministry of Finance has introduced tax plans and programs aligned with international best practices to address the challenges arising from these developments and to strengthen support for the business sector, promoting economic growth.
As a result, amendments have been made to certain articles in the Executive Regulations of the VAT Law. These changes reflect the latest developments in implementation, market needs, and feedback from stakeholders on tax policies, ensuring that the provisions of the Executive Regulations are fully aligned with recent updates to the Law.
The Cabinet Decision amending the Executive Regulations of Federal Decree-Law No. 8 of 2017 on Value Added Tax introduces significant changes. Part of the amendments seeks to align certain provisions of the Regulations with those outlined in Federal Decree-Law No. 18 of 2022, which also amended Federal Decree-Law No. 8 of 2017. Additionally, other amendments aim to implement the legislative policy of updating specific provisions within the Executive Regulations.
The amendments include exempting investment fund management services from VAT to stimulate growth in the investment management sector and increase the UAE’s attractiveness as a leading investment hub.
Additionally, certain services related to virtual assets will be exempt from VAT as part of efforts to support innovation and advanced financial technology, further positioning the UAE as a prominent center for virtual asset investment.
The changes also introduce an exemption for in-kind donations between charitable and government entities, valued at up to AED 5 million over a 12-month period, from the provisions of legal supply. This allows donors to recover the VAT incurred on these in-kind donations in accordance with the VAT Law, aimed at easing the burden on these entities and enhancing their societal role.
Furthermore, the amendments strengthen tax compliance by granting the Federal Tax Authority the authority to deregister taxpayers in specific cases, ensuring the integrity of the tax system and improving the efficiency of tax administration.