Influencer Accounting Guide in UAE
What is Influencer Accounting?
Influencer Accounting is a specialized field that has become very popular lately, especially in the UAE market. due to the multiple financial aspects that influencers are exposed to, the need for influencer accounting has emerged. as it monitors and tracks the profits and expenses of the influencer. the thing which demands an integrated finance service platform such as A-H-G to be your Influencer Accounting Guide in UAE.
why do you need Influencer Accounting
you might be asking yourself while reading “Influencer Accounting Guide in UAE” why do I need to make Influencer Accounting?! and here’s your answer:
- Influencer Accounting helps you to monetize your decisions.
- it also helps you to make your way to brand expansion.
- and no doubt this step can make your future planning clearer and to the point.
- this of course will help you understand the taxes you get to pay.
- gives you a wider look at your incomes and outcomes.
When Do Influencers Need Influencer Accounting
- when you decide to monetize your decisions and influence.
- when your brand begins to grow bigger, where the complexity of your finances will increase.
- before tax season, when it’s essential to know the taxes you owe in UAE or any other country, the thing that requires a deep understanding of reporting your income, and adhering to UAE tax laws, and that to avoid any loss of money as a result of being unorganized.
- when you begin to make future plans, so knowing where you stand financially is essential, so you can make proper future plans.
UAE Influencer Tax Regulations and Financial Management
knowing your tax responsibilities and adhering to them is essential, regardless of whether you work as a full-time influencer or a part-time alongside another job. both ways you must adhere to and uphold the transparency and compliance with the Federal Tax Authority (FTA).
Is VAT chargeable on all supplies made by Artists and Influencers
In respect of services made by Artists and influencers the normal rules apply for the applicability of VAT. Therefore, if the services are taxable, they would attract VAT at the appropriate rate. Similarly, services supplied by Influencers are generally subject to VAT, including but not limited to:
- Any online promotional activities performed on behalf of other businesses for consideration, such as promoting a product in a blog, featuring a product in a video, or otherwise promoting a business on a social media post.
- Any physical appearances, marketing, and advertising-related activities.
- Providing access to any SMIs’ network on social media etc.
- Any other services that the SMIs may provide for consideration.
If an Artist or SMI incurs any cost to make a supply and subsequently recovers the cost from its client, such reimbursement also falls within the scope of VAT in the UAE.
Is there a need for Influencers to register for VAT
According to the Basic Tax Information Bulletin for Artists and Influencers, which has been published by the Federal Tax Authority (FAT):
- UAE based Artists and Influencers who make taxable supplies (which include zero-rated supplies) in the UAE are required to register for VAT provided the value of their taxable supplies and imports in the last 12 months exceeded, or is expected to exceed in the next 30 days, the mandatory registration threshold of AED 375,000.
- They may also voluntarily register for VAT if the value of their taxable supplies and imports or taxable expenses incurred in the last 12 months exceeded, or is anticipated to exceed in the next 30 days, the voluntary registration threshold of AED 187,500. To calculate the threshold, the Artists and SMIs should take into consideration all the taxable supplies that they make, even if such supplies do not fall within the scope of their core artistic or influencer activity.
- In addition, non-resident Artists and SMIs are also required to register for VAT where they make any taxable supplies with the place of supply in the UAE and no other person is obligated to account for VAT on such supplies. There is no registration threshold for non-resident suppliers in such instances.
Conclusion
Thus we have come to the complete Influencer Accounting Guide in UAE, including why and when do you need to begin learning it, also we had a quick look at UAE Influencer Tax Regulations and Financial Management, we also answered the questions Is VAT chargeable on all supplies made by Artists and Influencers in UAE, and Is there a need for Influencers to register for VAT in UAE.
Managing finances as an influencer in the UAE can get complicated, but AHG makes it easier. With our experience in influencer accounting, we handle everything from tax compliance to financial planning, so If you need any tax services or tax consultancy, you won’t find better than AHG Legal Accounts. Each of our teams has extensive experience in this field and will provide you with the best services in a professional manner. Please feel free to contact us today, we are always waiting for your request to be fulfilled!
Click Here
