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Tue 17 Dec 2019 10:27 AM

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Facebook begins implementing VAT on ads

Facebook is legally required to verify tax registration numbers with the UAE's Federal Tax Authority

Facebook begins implementing VAT on ads

Facebook has begun implementing value-added tax (VAT) on the sale of ads in the UAE, the company has announced.

In a notice to UAE users, the firm said that “due to the implementation of a value-added tax (VAT) in the United Arab Emirates, Facebook is now required to charge VAT on the sale of ads in UAE.”

“All advertisers with a ‘sold to’ of United Arab Emirates that have not provided a tax registration number will be charged VAT at 5% on advertising services,” the statement added.

The notice noted that tax registration numbers can be added to a business’ Facebook account under ‘account settings’.

“It is important that you provide a valid tax registration number. We are legally required to verify this number with the UAE tax authority,” the notice said. “Invalid tax registration numbers will be disregarded and as a result, you will be charged a 5 percent VAT on the purchase of ads.”

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