Freelancing in UAE

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As a freelancer, do I have to register for VAT in UAE?

If you are making between AED 187,500 per year and AED 375,000 per year then you may register for VAT if you choose. If you make more than AED 375,000 per year, you must register for VAT.

For more information, please visit:

https://government.ae/en/information-and-services/finance-and-investment/taxation/valueaddedtaxvat

If you did not register for VAT, it’s always a good idea to keep good accounts just in case the policy changes in the future.

What is an employer/sponsor NOC?

As a freelancer, sponsored or employed by another company, in order to obtain the freelance permit, the company will need to issue a release letter of no objection (NOC) for you to apply for the freelance permit. If you have already cancelled your visa then the NOC will not be required only the visa cancellation page.

If you are sponsored by your spouse or parent to reside in the UAE, you only need a letter of no objection (NOC) from them. You are not required to change your visa status.

https://www.khaleejtimes.com/business/economy/get-freelance-permit-in/dubai-for-dh7500-

Legal basics of becoming a freelancer in UAE

Though freelancing seems a viable and an attractive way to work for many in the country, there are employees who are not sure about the rules that should govern their scope of work.

Read more here: https://www.emirates247.com/news/emirates/top-ten-rules-of-freelancing-in-the-uae-2013-11-05-1.526924

 

Do I have to pay TAX or VAT?

Value Added Tax or VAT is a tax on the consumption or use of goods and services levied at each point of sale. VAT is a form of indirect tax and is levied in more than 180 countries around the world. The end-consumer ultimately bears the cost. Businesses collect and account for the tax on behalf of the government.

https://government.ae/en/information-and-services/finance-and-investment/taxation/valueaddedtaxvat