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Who is a Tax Agent Under the UAE VAT Law?

To register a business in the UAE, it's important to understand how taxes are levied and collected under the statutory Federal VAT Law. Tax agents play a critical role in ensuring businesses comply with all regulations; since understanding tax regulations can be complex, engaging with an experienced professional is recommended. In this blog post, we will explore what a tax agent does and discuss some of the key benefits associated with appointing one. 

Who Are Tax Agents as Per the UAE VAT Law?

Tax Agents in UAE, as specified by Federal Law No. 7 of 2017 (the Value-Added Tax Law or “VAT Law”), are registered tax consultants approved by the country's Federal Tax Authority (FTA). They have a special responsibility to ensure compliance with VAT regulations and provide services to individuals and businesses subject to taxation in the UAE. 

What Are the Duties of a Tax Agent?

The duties of a tax agent include: 

  • Supporting companies in their registration process for value-added tax 
  • Helping companies understand the requirements for filing taxes 
  • Keeping clients aware of any changes in legislation or policy 
  • Providing advice on how best to manage their taxes 
  • Assisting with the preparation and filing of tax returns 
  • Representing clients in negotiations with the FTA 
  • Representing clients in appeals against the findings of the FTA 

What Are the Conditions to Register as a Tax Agent in the UAE?

In order to register as a tax agent in UAE, you must meet certain conditions set out by the Federal Tax Authority. These include: 

  • Being a citizen or resident of UAE 
  • Having an appropriate academic qualification or professional experience in accounting and taxation 
  • Obtaining professional indemnity insurance from an approved insurer 
  • Submitting satisfactory evidence that the applicant is fit and proper for registration as a tax agent (including obtaining a police certificate) 
  • Passing the FTA’s Competency Test for Tax Agents 
  • Acquiring an official stamp 

Tax agents approved by the Federal Tax Authority are required to adhere to the highest standards of professional conduct and provide high-quality services to their clients. They must comply with all applicable laws, regulations, ethical codes and other requirements set out by the FTA. 

By engaging a registered tax agent in UAE, taxpayers can take advantage of the expertise offered by a professional who understands all aspects of taxation. Doing so can help ensure that businesses remain compliant with VAT obligations and avoid costly penalties for noncompliance. 

Who Can Appoint a Tax Agent?

Anyone registered with the Federal Tax Authority (FTA) can appoint a tax agent in UAE. The FTA has provided a list of approved and licensed tax agents who have been assessed and qualified to provide professional services on behalf of taxpayers. Additionally, businesses must ensure that their tax agent is suitably qualified and experienced in areas such as tax planning and compliance. 

The list of approved tax agents includes their names, contact details, and qualifications. It is important to note that all businesses must ensure that their chosen tax agent meets the FTA’s minimum standards for licensing before engaging their services. 

Benefits of Hiring a Tax Agent in UAE

The business owner and other key management personnel can concentrate on other crucial tasks while a tax agent manages all of a company's tax-related matters. The appointment of a tax agent in Dubai, United Arab Emirates, to represent taxable persons before the Federal Tax Authority (FTA) about their tax affairs and taxable liabilities is mandated by the statutory VAT regulation.

The benefits of working with a licensed tax agent in UAE are as follows:

  • A registered tax agent in the UAE can help you save time, money, and effort. 
  • It is important to hire a professional tax agent who is certified by the Federal Tax Authority (FTA) to ensure that your taxes are handled legally and efficiently. 
  • Hiring a tax agent in the UAE will provide you with knowledge on how to file your taxes correctly, including any relevant deductions or credits that may be applicable. 
  • You will also benefit from expert advice on how to minimize your taxable income and maximize potential savings. 
  • With their experience and expertise, they can help you navigate complex financial situations while ensuring compliance with all local laws and regulations. 

Furthermore, a registered tax agent in UAE will provide specialized services tailored to meet the individual needs of their clients. This can include assistance with filing tax returns, managing payments, and ensuring proper documentation of transactions. 

Avail Expert Services of Top Tax Agents in the UAE

Essentially, professional tax agents in the UAE aid businesses to guard the business’s basic framework and ensuring compliance to the statutory regulations. With their guidance, businesses can save up on money, time and stress from worrying about taxes. So, if you are looking for a reputable and seasoned tax agent in Dubai, get in touch with us today and we shall be happy to assist you!

Ervee is a CPA with international experience in Tax and Accounting. He has over 12 years of experience in accounting and bookkeeping and over a year in VAT implementation, registration, and accounting in UAE. He regularly drives out inefficiencies in company operations and loves the challenge of helping clients find additional ways for an easier and improved compliance and verification of transactions.