UAE Tax Authority Urges Influencers to Declare Free Gifts
This week, the Federal Tax Authority in the UAE issued a bulletin with advice to influencers and artists, reminding them they must pay 5 per cent VAT if they earn more than Dh375,000 annually.
The company (if VAT registered) who issues the goods in exchange for services must also account for VAT on the supply of goods.
فيديو ذات صلة
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Paid promotional work, such as plugging a product, company or place online are included in services that are subject to the tax include any
Learn more about the requirements for a legal person to register for VAT via the #FederalTaxAuthority website. pic.twitter.com/dwWQ2rHq7h
— Federal Tax Authority - الهيئة الاتحادية للضرائب (@uaetax) March 4, 2021
However, they must also count the cost of any free products or experiences they receive in return for their services, the FTA said.
Non-resident artists and influencers are also required to register for VAT while working in the UAE, provided that they are working for a non-registered recipient. If the company they are working for is VAT registered in the UAE, the artist or influencer will not need to register themselves.
Image Source; Instagram