Abu Dhabi – Mubasher: The UAE’s Federal Tax Authority (FTA) on Sunday announced that social networking websites that promote commercial advertisements whose annual revenues yield exceeds AED 375,000 will be subject to the value-added tax (VAT).
The supplies provided via those sites will be subject to the VAT, if the supplier qualifies for the tax, said the FTA, according to “24” news website.
The VAT is an indirect tax imposed on the surplus value and added to the cost of domestic and imported goods.
The UAE forecasts that the levying of the VAT will generate between AED 10 billion to AED 12 billion ($2.7 billion to $3.2 billion) in revenues in the first year.
The majority of goods and services in the UAE will be subject to a 5% VAT as of the beginning of 2018.
