May 10, 2021
The United Arab Emirates (UAE) Tax Office confirmed on March 7, 2021, that suppliers and services provided for remuneration by artists and influencers are now subject to VAT in the United Arab Emirates.
This new regulation, which applies to artists and SMIs resident in the UAE, implies the following consequences:
• VAT registration is mandatory if artists and SMIs perform taxable supplies for an amount equal to or above the 375.000 EAD registration threshold within 12 months.
• Voluntary VAT registration is possible if artists and SMIs perform taxable operations that have exceeded the voluntary registration threshold (187.500 EAD) in the last 12 months or exceed it in the next 30 days.
• VAT registration is not required for foreign artists, and SMIs perform operations to benefit buyers registered for VAT in the UAE (application of reverse charge mechanism).
• VAT registration is mandatory if artists and SMIs provide services localized in the UAE to B2C recipients or to companies that are not registered for VAT in the UAE (invoicing with UAE VAT).