UAE (Dubai) Free Zone & Facebook Ads VAT Charge: How to avoid being charged VAT

[Sharkace]

Hello everyone,

I am seeking advice from those who have a Free Zone Company in the UAE (Dubai) and advertise on Facebook.

I am wondering how you structure your business to avoid the VAT that Facebook adds on top of your ad spend when you add your UAE company details to your ad account ?

You can add a "TRN" number to your Facebook account to be exempt from paying VAT on the ad spend, but I am not willing to register for VAT for my Free Zone company as I wish to avoid potentially being liable for the 9% corporation tax.

I was wondering for those who spend big budgets on Facebook, do you set up a company in Hong Kong or a UK LLP, or a US LLC, to avoid this VAT charge?


Thank you.


More info here: Bei Facebook anmelden

 

[Sharkace]

For those that advertise on Facebook through their UAE (Dubai) Free Zone company, did you just register for VAT to get the TRN number and then simply do a 0 filing so Facebook doesn't charge you VAT?

Or is there a better way around it?

 

[JimBeam]

You can add a "TRN" number to your Facebook account to be exempt from paying VAT on the ad spend, but I am not willing to register for VAT for my Free Zone company as I wish to avoid potentially being liable for the 9% corporation tax.

Once you reach AED 375k turnover (about $100k) your company MUST register for VAT and you can do it at AED 180k if you think that you'll reach AED 375k soon.

Being VAT registered has absolutely nothing to do with 9% corporate tax as these are two separate things.
After being VAT registered, if you do not do work with local companies, you won't pay any VAT so that's not an issue at all.