Understanding VAT for Artists and Influencers
Social media keeps getting new users every day. Artists and influencers reach big audiences through social media and other online platforms. Many brands now want to use these professionals for promotions and campaigns. The UAE Federal Tax Authority (FTA) gave clear rules about VAT for artists and influencers. You should know these rules if you work as an artist or influencer in the UAE.
What Services Are Taxable for Artists and Influencers in the UAE?
Artists and influencers offer many services to earn income. These services are taxable under UAE VAT rules. You must know if your work is a taxable supply. Here are some examples:
- Promoting products on social media platforms
- Endorsing products or services in posts or videos
- Launching new brands or products in collaboration with businesses
- Appearing in media campaigns or affiliate promotions
- Blogging, vlogging, and entertainment performances
All these services count as taxable supplies. You must follow UAE VAT rules if you do any of these.
Is Issuing Tax Invoices Mandatory for Artists and Influencers?
Yes, every artist or influencer in the UAE must issue tax invoices for taxable supplies. The FTA sets the invoice format. The invoice must show the supply value and VAT amount. If you’re registered for VAT, always give a correct tax invoice to clients.
Is VAT Registration Mandatory for Artists and Influencers in the UAE?
The VAT registration rules apply to artists and influencers, just like other businesses. You must register for VAT if your taxable supplies in the UAE go above the set thresholds. These are:
- Voluntary registration: If your taxable supplies are over AED 187,500 per year, you can choose to register for VAT.
- Mandatory registration: If your taxable supplies are over AED 375,000 per year, you must register for VAT in the UAE.
You must check your income often. Register for VAT when you reach the limit.
Is Filing VAT Returns Mandatory for Artists and Influencers?
When you register for VAT, you must file VAT returns regularly. The FTA will tell you how often to file, usually every quarter. You need to include all your supplies in your return—whether they are standard, zero-rated, or exempt. This return helps the FTA check your VAT liability.
Can Artists and Influencers Claim Input VAT Recovery?
If you are VAT registered, you can claim back input VAT on expenses connected to your business. For example, if you buy goods or services for your work, you may claim the VAT paid as input VAT. However, you cannot claim VAT on some things, like entertainment expenses or personal use vehicles.
VAT for Non-UAE Resident Artists and Influencers
If you are not a UAE resident but offer services in the UAE, VAT rules depend on your client. If your client is VAT-registered, they handle VAT using the reverse charge. If your client is not VAT-registered, you must register for VAT in the UAE and pay VAT directly. No threshold applies to non-residents.
Will VAT Apply to Free Services Provided by Artists and Influencers?
When you provide free services, VAT may still apply as “deemed supplies.” Each case is different, and you should check the VAT treatment for every deal. Getting advice from an expert at Mubarak Al Ketbi (MAK) Auditing is a smart move.
Why Choose Mubarak Al Ketbi (MAK) Auditing for VAT Help?
Mubarak Al Ketbi (MAK) Auditing has a strong team of VAT experts in Dubai. We keep up with the newest laws and changes in VAT rules. Our team explains all VAT duties and helps you register, file, and claim correctly. We guide artists and influencers in the UAE for full compliance.
What Can Mubarak Al Ketbi (MAK) Auditing Help You With?
Let’s put our heads together—because teamwork makes the dream work! Here’s how we help you:
- Guide you on VAT registration and rules in the UAE
- Prepare and check your tax invoices for all your supplies
- File VAT returns on time and with accuracy
- Advise you about input VAT recovery and exemptions
- Offer expert opinion for unique and complex VAT situations
For More Information
- Visit our office: Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
- Or contact/WhatsApp: +971 50 276 2132
