In the last few years, vloggers, online influencers, and bloggers have entered into a new industry. This industry is very lucrative, and more and more youths are showing interest in joining it. However, people who join the race of social media influencing hardly know that in the UAE, they will be taxed. If you are a social media influencer and not sure whether you should file a tax return or not, you can always contact a tax agent in Dubai and get your answers cleared.
Nevertheless, this blog will clear most of the things that might be bothering you about tax and social media influencers. One needs to understand that for many social media content creators is not just a hobby; it’s a full-time occupation, which is why they are taxable. Any service that an individual provides be it blogging, social media influencing, vlogging, and rest, if the individual is earning money out of it, that individual will be taxed.
Now that it is clear that social media influencers will be taxed, the next thing to know is how much will they be taxed? Here’s the good news for everyone, there isn’t any personal income tax associated with social media influencers, at least not in the UAE. However, the service that these social media influencers offer will be taxed under the standard rate of VAT, which is a value-added tax. 5% is the standard VAT rate in the UAE.
Since this industry is developing day by day in the UAE, it is better to speak to a tax consultant in Dubai and get help from them to declare the generated income. There’s another thing that you need to pay attention to. Since you will be generating income through personal branding, which is you, and if it is considered that you are running a business, you will have to register your brand for VAT with FTA.
Whether you are a full-time or part-time influencer, please remember that you will still be taxed. Let’s say you are working under a social media content creator, and you are getting paid for your service and helping the creator grow; you must report all your earnings. The VAT you will be paying will largely depend on the amount you earn through your work. Those whose annual threshold is AED 375,000 are qualified to register for VAT, and registering for VAT is, in fact, compulsory.
Certain things can help you lower the annual VAT bill. Some social media content creators can show the following as their expenses and reduce the overall VAT bill:
- Equipment that you have purchased for your work, such as phones, laptops, and cameras.
- You can show your broadband bills and phone bills as your expenses.
- If you had to travel to different places because of your work, that might come under expenses.
- Marketing costs can be included.
- And training courses as well as website expenditure, these two could be included as an expense as well.
The best way to learn how to reduce the VAT would be to get in touch with the right VAT services in Dubai provider and speak to them about this in detail.