Questions & Answers
Application of the VAT rules on influencers in the UAE
We all know that influencers are subject to 5% VAT in the UAE for conducting online promotional or marketing services.
But the question that no one has answered is, are the following subject to VAT in the UAE:
1- Google AdSense revenue generated from posting videos on youtube?
2- Affiliate marketing revenue paid by international affiliate networks?
If yes, can influencers register to FTA directly without a company?
Because having a company will result in paying newly introduced corporate tax if I'm not mistaken!
The influencer is subject to VAT only if it crosses AED 375,000 of the revenue per annum. The VAT you are paying is for the services.
If you are an individual or company, you are liable to register to VAT and claim it back only when you submit a VAT return above the threshold limit.
