UAE VAT on digital and e-services
The United Arab Emirates (UAE) introduced Value Added Tax on 1 January 2018, including imposing compliance and collections obligations on foreign providers of electronic and digital services. This includes marketplaces.
Definition of digital and e-services in UAE
The following services are liable to VAT:
- Streaming or download media (including video and music)
- Online gaming
- Cloud software and storage
There is no VAT registration threshold for non-resident providers of e-services. They must register immediately with the Federal Tax Authority.
There is no simplified VAT registration process in UAE; businesses must follow the regular VAT number application process. Foreign business will require a local tax agent to represent them and file returns.