Freelancing in the UAE: The New Tax Reality

With the introduction of Corporate Tax and the existing VAT framework, the days of "tax-free" freelancing in the UAE are changing. If you are a freelancer or solopreneur in Dubai, Abu Dhabi, or any other Emirate, you need to be precise.

The AED 375,000 Threshold

You must register for VAT if your taxable supplies and imports exceed AED 375,000 per year. You can voluntarily register if you cross AED 187,500.

The Golden Rule: Invoicing in AED

Even if you bill a client in New York in USD, your tax invoice must show the gross amount payable in AED for the VAT portion. Failure to do this can lead to fines from the Federal Tax Authority (FTA).

How SparkyMinis Keeps You Safe 🇦🇪

1. Multi-Currency with AED Conversion

SparkyMinis is smart.

Create an invoice in USD ($1,000).

Set your client's currency to USD.

But in `Settings > Business Profile`, ensure your Base Currency is AED.

Our reports will automatically track your turnover in AED, alerting you when you approach the AED 375k threshold.

2. The 5% VAT Chip

Go to: `Dashboard > Settings > Tax & Compliance`.

Create a chip: `VAT 5%`.

Apply it to every taxable invoice. The system separates the base amount from the tax, crucial for your quarterly returns.

3. TRN on Invoices

Your Tax Registration Number (TRN) is mandatory on all invoices.

Enter it once in `Settings`.

SparkyMinis places it prominently on your PDF header, along with the label "Tax Invoice" as required by UAE law.

Setup Your UAE Tax Profile →

"UAE Freelancers: A Simpler Way to Handle 5% VAT"

Freelancing in the UAE: The New Tax Reality

The AED 375,000 Threshold

The Golden Rule: Invoicing in AED

How SparkyMinis Keeps You Safe 🇦🇪

1. Multi-Currency with AED Conversion

2. The 5% VAT Chip

3. TRN on Invoices

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