This Public Clarification outlines the UAE VAT treatment for cryptocurrency mining activities using a proof-of-work mechanism. It clarifies that when a person mines cryptocurrency for their own account, it is not a taxable supply and falls outside the scope of VAT due to the lack of an identifiable recipient and a direct link between the activity and reward. Conversely, providing mining computational power as a service to another person for consideration constitutes a taxable supply. The document also details the rules for input tax recovery, which is not permissible for personal mining but may be for commercial mining services.