The key amendments introduced by the New Law aim at reducing administrative burden and clarifying previously ambiguous areas, as well as expanding the list of exempt financial services. These new exemptions apply to fund management activities, the transfer of ownership of virtual assets such as cryptocurrencies, and the conversion of virtual assets, noting that the exemptions related to virtual assets are applied retroactively, effective from 1 January 2018.
Key Advantages for Investors
Investors stand to benefit from higher returns, as the VAT savings from these exemptions can be reinvested into new opportunities across the region.
Recommended Action Plan
- Fund Managers: Evaluate whether your services qualify for VAT exemption and understand the impact on your VAT recovery position.
- Compliance: Examine the registration requirements and implement necessary procedures for compliance with the New Law.
- Business Forecasting: Assess how these exemptions could influence your financial forecasts and future business strategies.
- Virtual Asset Companies: Analyze the retrospective effect of the VAT exemption on your historical VAT position, especially regarding the recovery of input tax.
