Free trade agreements have made provisions for qualified and licensed persons to assist taxable persons in complying with value-added tax. These people are called tax agents. Let us learn more about tax agency under VAT.
Who is a tax agent?
A tax agent is a person registered in a free trade agreement, and can be appointed by a taxable person to represent him/her in the free trade agreement and assist him/her in fulfilling his/her tax obligations and granting tax rights. Tax agents can assist taxable persons to fully fulfill their tax obligations and save them the time and energy required for compliance.
What are the duties of a tax agent?
The duties of the tax agent are as follows:
One kind. According to the contractual agreement between the taxable person and the tax agent, assist the taxable person in fulfilling its tax obligations.
b. Keep confidential any information obtained in the course of performing their duties as a tax agent.
C. Refuse to participate in any work or program that may cause anyone to violate any law or endanger the integrity of the tax system.
d. If required by the free trade agreement, all information, documents, records and data related to the taxable person it represents should be provided.
What are the requirements for registration as a tax agent in the UAE?
Those who want to register as a tax agent should meet the following conditions:
One kind. Good conduct and have never been convicted of a crime or misdemeanor to damage reputation or honesty
b. Should hold a bachelor’s or master’s degree in taxation, accounting or law from a recognized educational institution. If the applicant has a bachelor’s degree in any other field, he should submit a tax certificate from an internationally recognized tax agency
C. Should hold at least 3 years relevant, latest tax, qualified accounting or legal experience certificate
d. Provide a certificate certifying oral and written communication in Arabic and English
e. Pass the FTA tax agent exam
F. Provide health certificate
G. Hold professional compensation insurance
When can I refuse the application for registration as a tax agent?
In the following two cases, the free trade agreement will reject the application for registration as a tax agent:
One kind. The applicant does not meet the registration requirements
b. The registration of the person as a tax agent will adversely affect the integrity of the UAE’s tax system
What is tax agent registration?
Those who want to act as a tax agent must compulsorily register with the FTA and obtain a tax agent license. The tax agent register is a register maintained by the FTA, and all matters related to the professional behavior of tax agents will be stored in it.
What are the administrative penalties for tax agents in the UAE?
Violation of Administrative Penalty (AED)
1. The person appointed as the legal representative of the taxable person fails to notify the FTA of his appointment within 20 working days from the date of appointment. The fine will come from the legal representative’s funds of 20,000
2. The person designated as the legal representative of the taxpayer fails to submit a tax return within 28 days of the second month after the end of the tax period. The fine will be paid for the first time with 1,000 funds of the legal representative, and 2,000 if repeated within 24 months
Therefore, tax agents play a very important role, which enables taxpayers to accurately and effectively perform compliance activities under the VAT regulations. They act as mediators between the taxable person and the FTA. In the next article, we will learn about the process of registering as a tax agent in the UAE.