Dubai influencers will have to change the way they work now with new Federal Tax rules meaning they must declare all free gifts.
The bulletin by the Federal Tax Authority means that all Dubai artists and social media influencers must register for VAT if they make more than AED370,000 a year. And that amount also includes all goods that are given in return for their services.
What it essentially means is that where influencers could get paid for their time by getting a free hotel stay or holiday or pair of sunglasses from their client, they now have to declare those goods as VAT. Which is a big change for the industry.
But also, if you’re earning AED370,000 from being an influencer, you can probably afford to get someone to do your tax for you.
The bulletin in full is below.
Payments include “any online promotional activities performed on behalf of other businesses for a consideration, such as promoting a product in a blog or a video or otherwise promoting a business on a social media post; physical appearances; marketing and advertising related activities; providing access to any SMI’s networks on social media, and any other services that the SMIs may provide for payment or reward.”
The new VAT rules affect both artists and social media influencers.
Artists are defined as ‘Individuals who make supplies in their personal capacity as performers, singers, dancers, stage artists, make-up artists, DJs, poets, song writers or any other individuals carrying out other activities.’
And social media influencers as ‘individuals who provide their services using social media to promote products and services such as bloggers, YouTube hosts, etc.’
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