The obligations and roles of a registered tax agent in UAE
Hiring a tax agent in UAE has become one of the essential requirements of all business entities after the introduction of VAT in 2018. The firms may approach the tax agent to acquire their professionalized services and advice regarding the matters of tax compliance and filing. Having the assistance of a tax agent in the UAE will protect the firms from fines and penalties which may be payable if the firm fails to meet the compliance requirements or if it makes any delay in filing VAT returns.
Who is a Tax Agent?
According to the UAE VAT law, a tax agent may be a person or a legal entity who is registered with the authority (FTA) and who is appointed on behalf of any other person to represent such person before the authority. It is a person who is responsible for providing its clients assistance regarding the VAT and its filings and helping them to maintain all the records and documents required for VAT-registered firms.
Why does a firm in UAE need a Tax agent?
A tax agent acts as an advisor and a communicator between its clients and the authority. A reputed tax agent may provide a business firm in UAE all the assistance regarding the VAT application on different goods and services as it may be a tedious task for a business if it is new in the market and if it lacks experience. So, in such circumstances, a tax agent may provide all the aid related to the tax i.e., VAT compliance and filing with the authority. It also acts as a communication link as the tax agent is registered under FTA and it can directly communicate with the authority as well as it can enquire about the tax procedure and it can raise any issues on behalf of its clients.
Read more: How to amend VAT registration in UAE
What are the advantages of hiring a professional Tax agent in UAE?
As explained above the main advantage of hiring a Tax agent is that it will assist the client regarding the VAT application, filing, and compliance. Some further advantages may include the following:
They simplify the process of filing and compliance with VAT
They may assist in the VAT assessment and represent the firm before FTA without any issues.
Avoids delay in filing of VAT returns and protects from huge fines and penalties
They not only protect their clients from present issues but also provide long-term protection by providing future assistance
A firm having multiple partners may face the issue of conflict of interest between the partners during the process of VAT planning. In such circumstances, the Tax agents may facilitate a neutral VAT planning
They may help the firms to stay updated regarding Tax aspects as the agents must stay updated regarding all the changes brought in the VAT.
Help in gaining tax benefits and reducing the tax liabilities in an efficient manner
Major obligations of a Tax Agent in the UAE
The obligations and duties that must be fulfilled by a professionalized Tax agent in UAE are as follows:
Ensuring whether the clients fulfill all the tax obligations and liabilities as per the VAT law
Ensuring and monitoring the activities of the clients to avoid tax evasion and indulgence in any malpractices such as money-laundering etc.
Providing accurate, authorized, and legitimate documents and records of the clients to the authority (FTA)
Preparation and filing of VAT returns on time on behalf of its clients
Assisting and maintaining all the documents during a tax audit
Ensuring and maintaining the confidentiality of the business information of its clients.
Who is eligible to become a Tax Agent in UAE?
Any individual can be a tax agent if he has a bachelor's degree or a master's degree in accounting, tax, or law from a well-known and recognized educational institution, or he must have a tax certification from an internationally recognized tax institution if he has bachelor's degree in any other fields.
He must have a certificate of professional experience for at least 3 years in accounting, tax, or the law.
He must have a certificate indicating his good conduct.
He must have a medical fitness certificate
He must have a valid professional indemnity insurance
He must have language proficiency in both English and Arabic written and spoken.
If an individual has satisfied all the above requirements, then he will be eligible to become a tax agent who may be registered under the authority.
Read more: What are the common errors made by the firms while filing VAT returns in UAE?
How can CDA assist you?
CDA is not only known for its professionalized services in accounting and auditing but also in tax consultancy and VAT filing and compliance services. With its experienced team, it always ensures whether the clients are satisfied with the services or not. Due to the custom-tailored and simplified form of rendering services the client can approach CDA whenever they require any assistance. To have more details about us, feel free to contact us.