UAE govt imposes VAT on Artists and Influencers
Performers, singers, dancers, stage artists, make-up artists, DJs, poets, songwriters, or any other individual who provide services in their personal capacity.
Social Media Influencers (SMIs)
Individuals who provide their services using social media to promote products and services such as bloggers, YouTube hosts, etc.
VAT Applicability on Influencers and Artists
Any service provided in their personal capacity for consideration is considered a taxable supply of services. If they are associated with any other VAT Registered Company and this company is raising Tax Invoices to the service recipients then Artist is not required to register himself and raise tax invoices.
Any online promotional activities performed on behalf of other businesses for consideration such as promoting a product in a blog, featuring a product in a video, or otherwise promoting a business on a social media post;
– Any physical appearances, marketing, and advertising related activities;
– Providing access to any SMIs’ network on social media
– Any other services provided for consideration.
If an SMI or artist incurs some expenses and gets reimbursement from the client, this reimbursement will be considered a part of taxable supply and VAT will be charged.
VAT Registration for Artists and Influencers
If the value of taxable supplies is more than the mandatory threshold i.e. AED375,000/- in the last 12 months or expected to exceed the mandatory threshold in the next 30 days then Artist or SMI has to register mandatorily.
If the value of taxable supplies is more than the voluntary threshold i.e. AED187,500/- in the last 12 months or expected to exceed the voluntary threshold in the next 30 days then Artist and SMI can register voluntarily.
VAT Input Claim for Artists and Influencers:
VAT Incurred to provide services can be adjusted in the VAT Return but not for the entertainment and vehicles which are also available for personal use.
Non-Resident Artists and SMIs:
If they are present in UAE and providing services to the residents of UAE in their personal capacity then they have to register with UAE VAT and raise tax invoices to the recipient of service. There is no registration threshold for such registration.
If they are providing services through an agent then the agent is liable to raise tax invoices to the recipient of services and the artist or SMI is not required to register himself separately.
If the artist or SMI is in contract with the agent, it will also affect the VAT implication.
Services we are offering:
- VAT Implication
- VAT Calculation and VAT Return Filing
- Other VAT and Accounting Services