10/12/2025
🇦🇪 Are you running ads on Google or Facebook? Confused why there is no VAT on their invoices?
It’s a very common question for UAE business owners and marketers! If you’ve noticed your ad invoices showing "0% VAT," don't assume it's tax-free. 🚫
Here is the simple breakdown of why these massive ad platforms fall under the Reverse Charge Mechanism (RCM) in the UAE:
1️⃣ They are Foreign Suppliers: Giants like Google and Meta (Facebook/Instagram) are non-resident suppliers and are not registered for VAT directly within the UAE.
2️⃣ The 0% Invoice: Because they aren't registered here, they don't collect the 5% VAT from you. Their invoices will show the ad amount, but 0% tax. 📄
3️⃣ It's an Imported Service: Under UAE tax law, online advertising is considered a taxable "imported service."
➡️ THE BOTTOM LINE: The responsibility shifts to you. Because of the Reverse Charge Mechanism, you, the UAE business, must account for that 5% VAT on your own VAT return (both as an input and an output), rather than Google or Facebook collecting it.
Make sure your accounting team is handling these invoices correctly to stay compliant with the FTA! ✅
Save this post for your next VAT filing! 💾