UAE Imposes Standardized Crypto Conversion Rules for VAT

The UAE has introduced new rules for Value Added Tax (VAT) on cryptocurrency payments. According to Directive No. 3 of 2026, issued by the Federal Tax Authority in mid-July, businesses must convert crypto payments into UAE dirhams using a standardized process.

Companies receiving crypto as payment must select three approved exchange platforms and compute an arithmetic average of their rates at the exact date and time of each transaction. This method is required for all digital currency VAT calculations throughout the year.

The FTA's approved platform list includes Binance FZE, Bybit Fintech FZE, Deribit FZE, Bitget, and Payward FZCO. Businesses must maintain timestamped logs of exchange rates pulled from each platform for every transaction.