What has the FTA issued so far in July 2026 — what are they about, and what does it mean for businesses?

Q: What has the FTA issued so far in July 2026 — what are they about, and what does it mean for businesses?

UAE Tax — What's New: 1–19 July 2026 --- - Directive on Tax Transactions No. 4 of 2026 — VAT on Fees and Charges Forming Part of Life Insurance and Life Reinsurance Contracts — Issued 14 July 2026 This directive, issued under Federal Decree-Law No. 8 of 2017 (VAT Law), confirms that ancillary services connected to a life insurance or reinsurance contract — such as administrative fees and charges — are treated as part of the VAT-exempt supply of life insurance, provided they are necessary for the supply, directly connected to the contract, and their consideration is bundled within the insurance premium. If fees are invoiced or charged separately from the premium, the exemption does not apply and standard VAT treatment kicks in. > Simply put: Life insurers and reinsurers can treat ancillary service fees as VAT-exempt only if those fees are embedded in the premium — charge them separately and VAT applies. --- - Directive on Tax Transactions No. 3 of 2026 — VAT on the Method of Convert

By Samar Boulos • July 19, 2026

Research Question

AI Analysis

UAE Tax — What's New: 1–19 July 2026

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Directive on Tax Transactions No. 4 of 2026 — VAT on Fees and Charges Forming Part of Life Insurance and Life Reinsurance Contracts — Issued 14 July 2026

This directive, issued under Federal Decree-Law No. 8 of 2017 (VAT Law), confirms that ancillary services connected to a life insurance or reinsurance contract — such as administrative fees and charges — are treated as part of the VAT-exempt supply of life insurance, provided they are necessary for the supply, directly connected to the contract, and their consideration is bundled within the insurance premium. If fees are invoiced or charged separately from the premium, the exemption does not apply and standard VAT treatment kicks in.

> Simply put: Life insurers and reinsurers can treat ancillary service fees as VAT-exempt only if those fees are embedded in the premium — charge them separately and VAT applies.

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Directive on Tax Transactions No. 3 of 2026 — VAT on the Method of Converting the Value of Digital Currencies into UAE Dirham — Issued 14 July 2026

Under Federal Decree-Law No. 8 of 2017 (VAT Law), this directive prescribes how taxable persons must convert digital currency values to AED for VAT return purposes. Businesses must select three centralised exchange platforms from an FTA-published list, use the same three platforms consistently for the entire calendar year, and calculate the arithmetic average of the exchange rates on those platforms at the date and time of the supply or receipt of consideration.

> Simply put: If you transact in crypto, you now have a mandatory three-platform averaging method for converting digital currency to AED on your VAT returns — pick your three platforms and stick with them all year.

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Corporate Tax — Summary of FTA Private Clarifications Issued up to May 2026 — Issued 10 July 2026

This consolidated document compiles the FTA's private clarification positions on Federal Decree-Law No. 47 of 2022 (Corporate Tax Law) and related decisions, covering a wide range of topics: Qualifying Investment Funds and REITs, Permanent Establishment, Qualifying Free Zone Persons (substance, qualifying income, qualifying activities), transfer pricing, participation exemption, tax groups, losses, transitional relief, and more. It is not new law, but it reveals how the FTA is interpreting the rules in practice — particularly useful for free zone businesses and groups with related-party structures.

> Simply put: This is the FTA's collected thinking on Corporate Tax — review it to see whether your position on free zones, transfer pricing, or group structures aligns with the Authority's interpretations.

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Directive on Tax Transactions No. 2 of 2026 — VAT on Adjustments of Output Tax and Input Tax Following a Registrant's Exit from a Tax Group — Issued 8 July 2026. Effective 1 August 2026.

Issued under Federal Decree-Law No. 8 of 2017 (VAT Law), this directive addresses what happens when a member leaves a VAT tax group but remains individually VAT-registered. Where adjustments are needed to taxable supplies made or taxable expenses incurred before the exit — and those were originally declared in the group's returns — the exiting member must now report those adjustments in its own returns. The member must retain supporting documentation linking the adjustments back to the group's filings.

> Simply put: If your entity is leaving a VAT group after 1 August 2026, any post-exit adjustments relating to the group period are your responsibility to report — keep the records to prove it.

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Directive on Tax Transactions No. 1 of 2026 — VAT on Judicial Expert Services — Issued 8 July 2026

This directive, under Federal Decree-Law No. 8 of 2017 (VAT Law), confirms that services provided by judicial experts — individuals or entities registered with the Ministry of Justice, local judicial authorities, or arbitration centres — when appointed by a court, are taxable supplies made in the course of business. All amounts received for such services constitute consideration for a supply of services. Judicial experts must register for VAT if they meet the registration thresholds and comply with all standard tax obligations.

> Simply put: Court-appointed expert work is a taxable business activity — judicial experts must register for VAT if they hit the threshold and charge VAT on their fees.

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[CTP011](#LEG:277) — Corporate Tax Public Clarification on Downward Adjustments Made by a Taxable Person in the Tax Return — Issued 1 July 2026. Effective from the date of implementation of Federal Decree-Law No. 47 of 2022 (Corporate Tax Law).

This public clarification addresses transfer pricing adjustments that reduce taxable income (downward adjustments) in the Corporate Tax return. It confirms that taxable persons must self-assess the need for transfer pricing adjustments without prior FTA approval, and must disclose all related-party transactions for which a downward adjustment is made — regardless of value or nature. This is a significant compliance point: the FTA is signalling that downward adjustments will receive scrutiny and full transparency is expected.

> Simply put: You can self-assess downward transfer pricing adjustments on your Corporate Tax return, but you must disclose every related-party transaction involved — no materiality threshold, no exceptions.

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Private Clarifications — Tax Procedures Guide TPGPC1 — Issued 1 July 2026. Effective July 2026.

This new guide, issued under Federal Decree-Law No. 28 of 2022 (Tax Procedures Law), sets out the complete framework for requesting private clarifications from the FTA — who is eligible, what matters qualify, grounds for rejection, the application process, fees, and how to handle disagreements with a clarification received. It consolidates provisions from multiple FTA and Cabinet decisions into a single practical reference. Businesses considering a private clarification request should review the eligibility and common-error sections before applying.

> Simply put: This is the FTA's official how-to guide for private clarification requests — read it before you apply to avoid rejection and wasted fees.

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