VAT in UAE: How do Tax Agents help you Ensure Compliance?

Taxable persons hire tax agents in the UAE to ensure they are meeting all the regulatory requirements mandated by the Federal Tax Authority (FTA). As per Federal Law No. (7) of 2017, tax agents are persons appointed on behalf of taxable entities to represent them before the FTA. Taxable businesses need to appoint the right tax agent to meet their tax obligations and avoid any type of tax-related penalties.

This article will help you understand why FTA-approved tax agents in the UAE are critical for ensuring tax compliance in the UAE. Read ahead to know further:

Who are the FTA-Registered Tax Agents in the UAE?

Tax agents assist taxable persons meet their tax obligations according to a contractual agreement between the person and the Tax Agent and in accordance with the Tax Agent’s duties as stated in the tax legislation. However, businesses need to hire tax agents who are registered with the FTA. As per Article 13 of the UAE Tax Procedures Law, only the persons listed in the FTA’s tax agents register and licensed by the Ministry of Economy are permitted to practice as a tax agent in the UAE.

How do tax agents in the UAE help you ensure compliance?

Tax agents in Dubai can help businesses meet their tax obligation by providing proper advice and accurate interpretation of the VAT Law. They can help companies meet the VAT requirements in the UAE by delivering the following services:

  1. Helping businesses to perform VAT registration in the UAE
  2. Prepare and submit VAT returns to the FTA on behalf of the businesses
  3. Maintain tax-related records and/or information
  4. Enquiring about tax-related matters with the FTA
  5. Submitting requests for reconsideration of decisions issued by the FTA
  6. Help businesses prepare for a tax audit
  7. Assist the business to apply for VAT Deregistration in the UAE
  8. Appeal to the FTA in case the client incurs tax-related penalties

Qualities & Qualifications of Tax Agents in the UAE

Before appointing a tax agent, you should understand the basic qualities and qualifications the person is required to hold. Article 10 of Cabinet Decision No. (36) of 2017 on the Executive Regulation of Federal Law No. (7) of 2017 states that a tax agent must possess the following qualities and qualifications to be listed in the FTA Register:

  • Tax agents in the UAE must be of good conduct & behaviour, and should not be convicted of any crime
  • Must hold at least a certified Bachelor’s or Master’s degree in tax, accounting or law from a recognised educational institution ( a bachelor’s degree plus a tax certification issued by an internationally known tax institute is also accepted)
  • At least three years experience as a tax professional / a qualified lawyer or an accountant
  • Written and oral communication skills in both Arabic and English
  • Must have passed any test to meet the qualification standards mandated by the FTA
  • Medically fit to perform the duties of a tax agent in the UAE
  • Must have professional indemnity insurance or be covered by one

What is the Significance of FTA-registered tax agents?

In order to ensure seamless VAT compliance in the UAE, taxable entities need to make sure their communication with the FTA is proper and effective. A tax agent in the UAE is the authorised person who can communicate directly with the FTA on your behalf. Since they are registered with the FTA, tax agents have the authority to represent you before the Authority. Tax agents can represent you before the FTA whenever the Authority makes any inquiries or you want to raise any issue with the Authority. Since a tax agent is well-versed in tax laws and the Arabic language, the FTA can easily understand and quickly resolve your tax-related issues.

Hire The Leading Tax Agents in Dubai, UAE

Services of tax agents in Dubai, UAE are a must for businesses to meet their tax obligations and enforce their tax rights. Businesses are required to hire FTA-registered tax agents who will represent them before the Authority on tax-related matters. Jitendra Chartered Accountants (JCA) is an FTA-approved tax agency in the UAE providing bespoke tax services.

We have a highly qualified tax agent in the UAE who is registered with the FTA. As your approved tax agent in Dubai, it’s our responsibility to help our clients to ensure tax compliance. Being one of the leading registered tax agents in the UAE, JCA adheres to the highest standards of professional conduct and code of ethics. It is this professional integrity that makes us maintain our reputation and goodwill for more than 21 years.