Lifestyle

Tax hit for UAE's influencers

Government plan could eventually aid in social media influencing in long run
Tax hit for UAE's influencers

The UAE's Federal Tax Authority (FTA) had confirmed a Value Added Tax (VAT) aimed at businesses who work with influencers in the influencer earns more than AED375,000 a year in freebies. Once they have registered for the VAT, influencers will need to issue an invoice for any freebie they receive, whether it is worth AED10 or 10 million

But industry experts feel this could assist in making the profession more serious in terms of a business. An annual government issues licence is required for anyone making commercial activities through social media in the UAE from 2019

In Arabian Business Industries, Ahmad Bashour, executive director, ITP Live., said: We see this as another positive sign for the industry, the new announcement by the FTA gives more credibility to influencer marketing as a serious profession.

The UAE have been pioneers in recognising individual content creation as a legitimate career path first through the introduction of licences and now with this new VAT tax law,” he added.

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