Digital Tax Solutions to Stay Compliant

Trying to remain compliant with digital services taxation can be a struggle. Not managing effectively can hinder your business operations as well. With all businesses getting digitised and the rise of e-commerce, digital tax has become an inseparable part of the tax ecosystem. 

Avyanco provides specialised guidance that is tailored to e-commerce and digital businesses, helping them effortlessly handle digital taxation. We assist with managing digital tax registrations, filings, imports/exports, audits, and other requirements when supplying digital goods or services in the UAE.

We have dedicated digital tax advisors who act as your compliance department so you can focus on business growth while avoiding penalties. Avyanco’s digital tax advisory services enable you to enter new markets without worrying about tax obligations.

We help e-commerce, tech, and digital-based companies operate successfully in the UAE. 

What is the Digital Tax in UAE?

The UAE government decided to adopt GCC’s Unified VAT agreement. They started applying a value-added tax (VAT) of 5% on sales of electronic goods and services to foreign sellers. 

There is no minimum threshold, and all foreign suppliers selling digital services and products in the UAE are legally required to register for VAT.

Who Pays Digital Tax?

Foreign companies that do not have a physical presence in the UAE but are involved in supplying digital services and products to UAE customers must pay digital tax. 

Common categories that fall under digital taxation include:

• Media subscriptions for streaming music, videos, etc.
• Mobile applications and in-app purchases
• Cloud computing services and online data storage
• Online advertising, whether search, display, classifieds, etc.
• Sales of digital products like ebooks, photography, software, etc.

Any such foreign suppliers or businesses must register and account for VAT on services sold to UAE-based consumers under “INT 11.”

Avyanco’s Digital Tax Advisory Services to Assist You

Avyanco offers end-to-end guidance on all aspects of digital taxation around the UAE, GCC region, and beyond. Our digital tax experts have several years of experience assisting digital, e-commerce, and technology companies entering regional markets.

We provide assistance with all things related to tax compliance. Our digital tax consultants offer guidance on:

• An e-commerce store selling to overseas customers with a virtual PE requiring declarations in those countries and resulting in compliance challenges
• A UAE/GCC company or its foreign parent company facing income tax and filing obligations abroad 
• Compliance related to digital/internet tax on digital transactions across borders in foreign nations
• Tax structures for digital business models that keep up with UAE’s evolving tax landscape
• How initiatives like BEPS Action 1 may impact cross-border transactions of an MNE in the e-commerce industry

We offer precise and personalised support with quick response times. Let Avyanco eliminate all taxation hurdles so you can smoothly expand your company regionally. We ensure there are no non-compliance-related issues ever.

Contact us today to analyse your business and unique situation to find a tailored solution that suits you perfectly.