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.”