Here's all you need to know about VAT registration in the UAE.
It is the age of creators, and the UAE government has taken significant initiatives in recent years to improve and simplify the work environment for freelancers in the UAE. In November 2020, the Abu Dhabi Department of Economic Development introduced the freelancing visa. The advantage of this visa is that any professional can work as a freelancer in the UAE without the need for office space. They can apply for UAE resident visas for themselves and their family. If the freelancer’s earnings are subject to UAE VAT, a financial audit is required.
1. A freelancer obtains a trade license. If the freelancing firm generates AED 375,000 or more in revenue, it is qualified for VAT reporting. In the UAE, freelancers such as influencers, coders, painters, photographers, and so on quickly generate revenues of more than AED 375,000. As a result, they are not tax-exempt.
2. In addition, if a freelancer’s earnings fall between AED 187,000 and AED 375,000, registering for VAT becomes optional.
3. Revenues less than AED 187,000 are not subject to VAT reporting.
*There are three reasons why a freelancer should seek professional accounting services in the UAE.*
1. To avoid business disruption
2. Avoiding fines
3. Save money on software purchases
*Need assistance registering for VAT as a freelancer?*