Implementation of UAE VAT in Artists and Influencers

Implementation of UAE VAT in Artists and Influencers

Artists and Influencers – get the best VAT consultants in UAE

As social media platforms are gaining more attention these days, there has been a significant increase in the professionals who recognize themselves as artists or influencers. With far reaching attention, the social media influencers have taken branding into storm in the platforms like Facebook, Instagram, Tik Tok, Twitter, YouTube, and LinkedIn. Social media influencers in UAE have been making fame and profit by extending b endorsing brands among millions of followers. 

Social media influencers in Dubai have been overlooking their VAT obligations until new guidelines were issued by the Federal tax authority (FTA). Considering the evolving promotional activities offered by artists and influencers, FTA recently issued a statement detailing the VAT implications on their services. As per the FTA rules, calculative VAT rate is applicable on taxable supplies made by the influencers and artists. Hence, these artists approach the best VAT consultants in Dubai to handle their tax requirements and make it critical to move on. 

Implementation of UAE VAT in Artists and Influencers

According to FTA, artists are individuals who utilize their personal capacity such as singers, dancers, performers, stage artists, Djs, poets, songwriters, or people who carry out any fgother activities. Social media influencers in UAE are individuals who provide their services using social media to promote the brands products and services. You tubers and bloggers who make taxable supplies are potential influencers and applicable to follow the VAT charge. VAT consultants in UAE support artists and influencers to organize their income making necessary solutions to handle their taxable supplies as per the UAE VAT laws.

What are the tax supplies made by artists and social media influencers in Dubai?

FTA applies normal rules on artists to determine the VAT obligations. If tax supplies are appropriate VAT rates are applicable. In the case of influencers, some of the services that subject to VAT include, 

  • Online promotional activities performed in return for payment, promotion of a product through blog, featuring product in video, and endorsing business through social medias
  • Physical appearance in promoting a business, involving in other advertising or marketing activities. 
  • Providing access to the social media page of influencers
  • Services provided by influencers for a consideration

The best VAT consultancy firms in Dubai handle all your VAT requirements. If artists or influencers incur any cost to make supply and recover the cost from its clients. Such repayments also fall under the scope of VAT law in the UAE. Artists and influencers avail help from the best tax agents in UAE to determine the VAT applicability on the various services. 

VAT registration in UAE for residents and non-residents

Artists and social media influencers in UAE who make tax supplies in the country, must register for VAT if the total value of supplies exceed the threshold value of AED 375, 00 per annum. They also opt for voluntary VAT registration in UAE, if the taxable supplies and imports exceed voluntary registration threshold of AED 187,500. Influencers and artists consider all the taxable supplies to calculate the VAT threshold that do not come under the core influencer activity. 

Artists and social media influencers who are not UAE residents are required to complete their VAT registration in UAE, provided if they make taxable supplies with the place of supply in the UAE. There is no registration threshold and no other person is obliged to account for VAT in such supplies. Tax consultants in Dubai help artists and influencers to register and account for VAT. 

Reverse charge mechanism for influencers

If a non-resident influencer or artist provides service on a contract basis, then UAE VAT law allows non-resident not to register VAT as the recipient will account for VAT rules under the reverse charge mechanism. If the celebrity provides services to UAE-based unregistered person and the place of supply falls within UAE, then there is no registration threshold.  If an artist or influencer provides any services to an unregistered recipient, then go for immediate VAT registration in UAE along with the VAT charge on supply. 

Issuance of Tax invoice

Artists and influencers should issue tax invoice when the taxable supply is made to an unregistered recipient or if the supply made to a registered recipient doesn’t exceed AED 10,000. 

Input VAT recovery by FTA UAE

Artists and influencers are eligible for full recovery of input VAT. But, certain blocked items are an exception for input tax recovery, some services like entertainment or rented motor vehicles for personal use. 

VAT on products and gifts in return for services

In some cases, an artist or influencer receive products such as phone or some other gift as return for their services. In such cases, it’s considered wholly or partly monetary. The value of supply is monetary part plus market value of non-monetary part less than the VAT amount. 

If clients provide products to the artists or influencers who are registered for VAT, then they are require to account for VAT on the supply of goods. This barter arrangement is complex and so, VAT consultants follow as per the FTA rules and assess the VAT implication on such supplies on a transaction-by-transaction basis. 

Influencers who doesn’t charge consideration

In cases where, VAT registered artists or influencers do not charge any consideration for their services, the provision of deemed supply is applicable. This accounts for the VAT, if supply falls within the definition of deemed supply. But, it should be considered on the basis of facts on a case by case basis. This turns out to be a complex situation, but with the assistance of registered VAT consultants in Dubai, it becomes an easy job. 

How A & A helps artists and social media influencers in UAE?

VAT return filing is mandatory for any artists or influencers and so, with the help of best VAT consultants in UAE file your periodic returns with FTA. The frequency of such filing VAT return will be instructed as per the FTA during the registration process. 

Influencers and artists are required to assess their VAT obligations and clarify the applicability of tax on the services they provide. Since many artists and influencers are overlooking their VAT obligations, it’s mandatory to achieve complete assistance from FTA registered VAT consultants in Dubai.  

Being one of the top-rated VAT consultants in Dubai, we guide artists or influencers through VAT registration, VAT accounting, record-keeping, and VAT return filing,

A & A associate is a leading tax consultant in Dubai that provide all services to ensure VAT compliance in UAE. Our tax agents in UAE are highly-skilled and minimize the legal issues for VAT registration and VAT returns filing

Our services make sure smooth functioning of your operations with timely guidance and up-to-date on frequent developments in VAT regulation. 

Have a clear idea of the implications of UAE VAT on artists and influencers! Any queries, feel free to contact us!

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