FTA sets digital currency conversion method for VAT returns

The Federal Tax Authority has issued Directive No. 3 of 2026 on the method of converting digital currencies into UAE Dirham for VAT purposes. Taxable persons making supplies of digital currency or receiving consideration in digital currency must convert its value using a prescribed mechanism: select three centralized public exchange platforms from a list published by the FTA, use the same three platforms for all transactions within a calendar year, calculate the numerical average of exchange rates from those platforms at the time of supply or receipt of consideration, and convert using that average. Records of exchange rates obtained from each platform must be retained. The FTA will issue a clarification for cases where no exchange rate is available on three platforms and will publish the approved list of platforms.