Influencing- this term has created quite a buzz with time. Every second person you meet wants to be an influencer. Well, it can be because they think they have what it takes, or just the idea of receiving fancy gifts lure them. And if you are someone who loves the idea of getting free stuff, then let us tell you that Dubai has issued a new notice for influencers now. Yep, a bulletin issued by the Federal Tax Authority states that Dubai artists and social media influencers must register for VAT if their earnings exceed AED 370,000 in 12 months. Read on. to know more about this update.
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Dubai Influencers To Pay VAT On Goods Received From The Brands
As per the update issued by the authorities, goods such as phones (which are often received by influencers from brands) are included in the taxable amount. Under these regulations, the company (if VAT registered) that issues the goods in exchange for services must also account for VAT on the supply of goods.
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If the artist or influencer is working on a barter basis and is receiving goods and not money, then the value of the goods is the monetary part plus the market value of the non-monetary part, less the VAT amount. When it comes to artists, it includes – performers, singers, dancers, stage artists, make-up artists, DJs, poets, songwriters or any other individuals carrying out other activities.
Non-resident Artists Come Under This Update As Well
Social media influencers include- individuals who provide their services by promoting them on social media, such as bloggers, YouTubers, etc. Influencers will also have to pay tax on work that includes physical appearances or marketing and advertising related activities.
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Non-resident artists and influencers are also required to register for VAT while working in the UAE, only if they are working for a non-registered recipient. And if the company they are associating with it is registered in the UAE then, they don’t have to register themselves. Well, if you think this is it, then you must know that the bulletin has also updated the terms for influencers working overseas. If an artist or influencer works overseas to promote a UAE company, a five per cent VAT charge is applied.
What are your thought’s on this? Let us know in the comments below.