UAE Sets Standard Method For Converting Crypto Payments Into Dirhams For VAT

The United Arab Emirates (UAE) has set a clearer path for companies that take digital assets in the course of trade. The Federal Tax Authority has published Directive on Tax Transactions No. 3 of 2026, which tells taxable persons exactly how to turn cryptocurrency consideration into UAE dirhams when they complete a VAT return.

The rule covers two situations. It applies when a registered business supplies a digital currency itself. It also applies when the business sells goods or services and is paid in a digital currency.

In both cases the dirham figure that appears on the return must be calculated in a prescribed way rather than taken from a single market quote or an internal book rate.

The method is built around three consistent sources.

First, the business chooses three platforms from the Authority’s published list of centralised public digital currency exchanges.

The current list names Binance FZE, Bybit Fintech FZE, Deribit FZE, Bitget and Payward FZCO.

Once the three names are selected they must stay the same for every relevant transaction throughout that calendar year.

Switching mid-year is not permitted.

Second, at the precise date and time of the supply—or the date and time the consideration is received, whichever the VAT rules require—the business records the exchange rate shown by each of the three chosen platforms.