On the 11th of June 2017, the landmark Federal Law Number 7 of 2017 was released to the whole nation of the UAE by the President himself, His Highness Sheikh Khalifa bin Zayed Al Nahyan. This law was all about the value-added tax (VAT) procedures that are now being implemented in the country. This is considered to have laid the foundations of the said tax system that is now bringing good effects to the country.
In addition, the Federal Tax Authority (FTA)’s role in this whole new era is explained in a detailed manner for people to know the new government department that handles the levy system in the UAE.
The levy system has brought with it new things that people in the business industry need to learn to keep up with the system. In knowing these things, it is easier for them to deal with and handle the things that need to be understood in this new era, although it has been months since the VAT implementation in the UAE.
There is more to know than VAT procedures and VAT registration in the UAE that business people need to be aware of to continually survive. One of them is knowing the existence of levy agents. These people are defined in the law itself, and the information is laid down by the government itself.
In the above-mentioned law, the definition of Tax Agent is clearly defined in Article 1, Chapter 1. The scope of applications is also stated. Tax Agent is described as “any Person registered with the Authority in the Register, who is appointed on behalf of another person to represent him before the Authority and assist him in the fulfillment of his levy obligations and the exercise of his associated tax rights states that a Tax Agent.”
To sum up, what the quotation that is directly taken from the law means, levy agents are people who are registered with the FTA and are therefore regulated to help VAT-registered businesses with their levy affairs and concerns.
Agents help Taxable People meet the requirements that are set by the government for the tax system to function effectively in the whole country, and to prevent any bad records that are concerned to levy.
To summarize the above, below are the duties and responsibilities of Tax Agents when appointed by Taxable People to assist them:
It should be noted that the FTA is authorized to use the documents or records of a Taxable Person for levy audit purposes.
Taxable People are allowed to appoint tax agents when necessary for direct representation to the FTA. This is all stated in Article 15, Part 2, Chapter 2 of the above-mentioned law.
When a Taxable Person has informed the FTA of the canceled or terminated contract between them and a certain levy agent, the latter is not authorized anymore to deal directly with the FTA on behalf of the said Taxable Person.
Things will be easier for businesses that are registered for VAT to deal with tax-related concerns and matters, as Tax Agents are regulated by the FTA and are passers of the high standard of requirements that the FTA has set.
Choosing the right tax agent in the UAE has a direct impact on your compliance and protection against penalties. At Farahat & Co., we not only manage your levy obligations but also safeguard your business from unnecessary risks while ensuring full compliance with UAE levy regulations. We are a reputable Tax Agent in the UAE for the following reasons:
1. Approved by the Federal Tax Authority (FTA)
By choosing Farahat & Co., you are engaging a firm formally registered and approved by th FTA. This accreditation enables us to manage compliance matters, respond to official queries on your behalf, and act as your legal representative.
2. Comprehensive Compliance, Zero Stress
We provide end-to-end levy compliance services, including corporate levy updates, audits, VAT registration, and filing. Our team monitors deadlines, corrects filing errors, and ensures your company avoids penalties.
3. Direct Representation Before the FTA
Tax disputes and audits can be challenging. At Farahat & Co., we represent your business directly before the FTA, offering expert defense and comprehensive support. This allows you to focus on business growth while we manage the complexities of regulatory proceedings.
4. Professionalism, Integrity, and Confidentiality
We uphold the highest ethical standards and maintain confidentiality concerning your financial information. Our approach is transparent, professional, and uncompromising, ensuring that your levy affairs are handled with integrity.
What Should You Do Next?
The UAE’s levy landscape is continuously evolving, and delaying compliance can result in costly fines or notices. Secure your business by appointing Farahat & Co. as your tax agent today. With our expertise, reliable compliance services, and trusted guidance.
