Tax Agent under UAE VAT
The FTA has made the provision for qualified and licensed persons to assist Taxable Persons in compliance under VAT. These persons are called Tax Agents. Let us understand more about Tax Agents under VAT.
Who is a Tax Agent?
A Tax Agent is a person registered with the FTA, who can be appointed by a Taxable Person to represent him/her before the FTA and assist in fulfilling his/her tax obligations and exercising his tax rights. A Tax Agent can assist taxable persons to fully meet their tax obligations and save them the time and effort required in compliance.
What are the duties of a Tax Agent?
The duties of a Tax Agent are the following:
- a. Assist Taxable Persons with their tax obligations as per the contractual agreement between the Taxable Person and the Tax Agent.
- b. Maintain the confidentiality of any information obtained in the course of performing his/her duties as a Tax Agent.
- c. Refuse to participate in any work or plan which may result in the breach of any Law by any person or which may jeopardise the integrity of the tax system.
- d. If and when requested by the FTA, provide all information, documents, records and data required regarding the Taxable Person he/she represents.
What are the conditions to register as a Tax Agent in UAE?
A person wanting to register as a Tax Agent should fulfil the following conditions:
- a. Be of good conduct and behaviour and never have been convicted of a crime or misdemeanour prejudicial to honour or honesty
- b. Should hold a certified Bachelor or Master degree in tax, accounting or law from a recognised educational institution. If the applicant holds a bachelor degree in any other field, he/she should submit a tax certification from an internationally recognised tax institute
- c. Should hold a certification of relevant and recent experience of at least 3 years in tax, qualified accounting or Law
- d. Provide a certificate proving their verbal and written communication in both Arabic and English
- e. Pass the FTA’s Tax Agent exam
- f. Provide a medical fitness certificate
- g. Hold professional indemnity insurance
When can application for registration as a Tax Agent be rejected?
The FTA will reject an application for registration as a Tax Agent in the following 2 cases:
- a. The applicant does not meet the registration requirements
- b. The person’s registration as a Tax Agent will adversely affect the integrity of the tax system in UAE
What is Tax Agent register?
A person who would like to act as a Tax Agent has to mandatorily register with the FTA and obtain a Tax Agent license. A Tax Agent register is a register maintained by the FTA in which all matters related to a Tax Agent’s professional conduct will be lodged.
What are the Administrative Penalties applicable to Tax Agents in UAE?
|Violation||Administrative Penalty (AED)|
|1. Failure by a person appointed as a legal representative for a Taxable Person to inform the FTA of his/her appointment within 20 business days from the date of the appointment. The penalty will be due from the legal representative’s funds||20,000|
|2. Failure by a person appointed as a legal representative for a Taxable Person to file a tax return within the 28th of the month following the end of the tax period. The penalty will be due from the legal representative’s funds||1,000 for the first time 2,000 in case of repetition within 24 months|
Hence, a Tax Agent performs a very important role of enabling and guiding Taxable Persons to accurately and effectively perform activities of compliance under VAT. They act as a mediator between Taxable Persons and the FTA. In our next article, we will understand the process of registering as a Tax Agent in UAE.