Dubai – Mubasher: Social media companies operating in the UAE, such as Facebook and LinkedIn, on Monday stated that their paid services were subject to value-added tax (VAT).
Products and services provided by LinkedIn, including account upgrading, may be subject to VAT, the company revealed, adding that it would charge 5% VAT for its transactions in the UAE.
Meanwhile, Facebook said that non-commercial ads would be subject to VAT at the percentage set by the respective county, where the ad’s buyer resides.
If the business’ address is not within the European Union (EU), non-commercial ads will not be exempted from the VAT, the company concluded.
The UAE has put 5% VAT into effect as of 1 January 2018.
