SS&Co

Crypto VAT regulation changes Definition: Virtual assets are now defined as "digital representations of value that can be traded or transferred digitally and used for investment purposes, excluding fiat currencies or securities". Briefing:  The Middle East is making advances in the safe use and innovation of digital/virtual assets and cryptocurrencies by investing in research and passing legislation in this area. As part of the drive for innovation, new authorities will be established to supervise virtual assets and virtual assets service providers (VASPs), the growth of innovation hubs, technology and regulatory sandboxes, or public-private partnerships in the blockchain and digital asset space, and the modification of current regulatory frameworks to incorporate virtual asset activities and business models, with public consultations serving as a prerequisite in the majority of instances.  This is a significant development, as it brings clarity and structure to the taxation of digital assets, which have been a growing area of interest and investment in the UAE. Exemption Criteria: Financial Services Classification: Virtual assets may be eligible for VAT exemption if they are classified in a manner that is comparable to traditional financial services, such as currency exchange. VAT is generally waived for financial services in the UAE, including currency exchange.  The trading of virtual assets, such as cryptocurrencies, may be exempt from VAT if it is considered a transfer of ownership like conventional currencies.    Custodial Services or Digital Wallet Provision: Services associated with the storage, protection, or administration of virtual assets (digital wallets) may be subject to VAT. Nevertheless, if these services are classified as pecuniary in nature, they may be considered exempt services, similar to bank account management services. The imposition of VAT on service fees: The fees levied for consulting, brokerage, or advisory services related to virtual assets are typically subject to VAT, as they are considered services rather than financial transactions.  Purely advisory or transactional services that facilitate virtual asset trading without transmitting the asset itself may not be exempt.    Cross-Border Transactions: If the recipient is VAT-registered in the UAE and the supplier is non-resident, the Reverse Charge Mechanism (RCM) may be applicable for cross-border transactions involving virtual assets. This may affect the treatment of any associated service fees. For expert guidance on regulated activities related to virtual assets and digital security, please feel free to reach out at: info@sscoglobal.com #blockchain #cryptocurrency #Tokenization #Regulatory #Compliance #License #DigitalAssets #Finetch #UAE #Dubai #VirtualAssets #VARA #cryptoupdate

Igniting Further Discussion on Rak DAO Conference!   We’re thrilled to discuss SS&Co Global's comprehensive services at the upcoming Rak DAO Conference, guiding businesses through the intricacies of Web 3.0. Unlock Blockchain Success with SS&Co Global! As a regulatory expert and accounting specialist, SS&Co. Global is dedicated to empowering blockchain-based businesses. Here's how: Expert Services: 1. Regulatory Advisory for Blockchain-Based Businesses: Navigate SCA, VARA, ADGM, and DIFC regulations with confidence.  2. Accounting and Reporting Solutions: Customized expert assessment, design and effective accounting and reporting systems for seamless financial management of your business.  3. Tax Optimization Strategies: Strategic insights for evaluating and implementing tax optimization solutions to achieve improved financial results. Let's Shape the Future of Blockchain Together Join us at the RAK Digital Assets Oasis conference booth number 37 to explore innovative solutions, foster collaboration, and drive growth. We’re excited to connect with fellow visionaries and entrepreneurs and share expertise to propel the blockchain ecosystem forward. See you at the conference!

Exciting News from SSCO! We are thrilled to announce that SSCO will participate in the upcoming Web 3.0 event hosted by RAK Digital Assets Oasis on October 25th,2024! This is a fantastic opportunity to connect with industry leaders, explore innovative technologies, and discuss the future of decentralized solutions. 📍 Visit us at Booth #37 at RAK DAO Conference to learn more about our specialized financial solutions for Web 3.0 companies. Join us as we dive into the world of decentralized technologies and collaborations. Let’s shape the future together! #SSCO #Web3 #RAKDAO #UAE #Innovation #Decentralization #TechEvent #Regulations #DAO #blockchain #RAKDAOConference #RAKDAOEvent #FinancialSolutions