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)
- Apps
- Online gaming
- Advertising
- Cloud software and storage
VAT registrations
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.
Other resources
Explore global VAT updates, new e-invoicing mandates, and key U.S. sales tax changes in this annual Avalara report.
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