The UAE Value-Added Tax: A General Overview for Artists, Social Media Influencers, and Freelancers

1. VAT  Applicability

According to UAE tax regulations, artists, social media influencers, and freelancers offering services or products in the UAE are obligated to pay a 5% VAT.

2. VAT Registration limits

Sales exceeding AED 375,000 in the past 12 months or anticipated to cross this mark in the next 30 days require mandatory registration. It is optional to register if sales are less than AED 187,500.

3. Minimum income for VAT registration

if your income is more than AED 375,000, you are required to pay value-added tax if you work as a performer, singer, dancer, makeup artist, blogger, or in a similar occupation.

4. Value-Added Tax for Online Stores and Amazon Vendors

Online retailers and Amazon vendors in the UAE are also subject to VAT.

5. How Value-Added Taxes Apply to Freebies and Exchanges?

To stay in line with VAT regulations, influencers need to disclose how much free goods and services were worth in exchange for their services.

6. No VAT if client is outside UAE

When selling art or services to clients outside the United Arab Emirates, you do not apply the 5% VAT

7. Generate VAT invoice

Social Media Influencers in the UAE should generate VAT invoices. If you’re operating within the UAE and offering services to clients in the UAE that are subject to the 5% VAT

11. Fines for Filing and Registration Delayed

Late VAT registration, filing, or payment can result in penalty as high as 300% of the total amount due, with fines starting at AED 20,000 for late registration and penalties reaching that high for late filing and payment.

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