The Federal Tax Authority or the FTA has very clearly defined the standards and specifications that must be met to be a VAT TAX Agent. As per the Federal Law No. (7) of 2017 on Tax Procedures: Any individual who is registered with the authority or appointed on behalf of another person to represent him before the authority and assist him in the fulfillment of his tax obligations and the exercise of his associated tax rights.
The introduction of VAT in UAE has introduced a new profession of the ‘TAX Agent’. The Job Profile will attract experienced as well as fresh professionals working in accounting and legal services. In this article, we throw light on the procedures and step involved to register as a Tax Agent under UAE VAT.
The Registration Process involves the following steps:
1. A person who wants to be a registered tax agent must first mandatorily register with the FTA by filling an official application form.
2. Once submitted, the FTA than has 15 working days at its disposal to take a decision on the applicant’s request. In case the FTA requires some additional information from the applicant, the same will be informed to the applicant or the FTA will take its decision based on the information shared by the applicant in the online application form. In addition to this, the FTA may request for a personal interview or details about the references made by the applicant in the form.
3. The FTA than makes a preliminary decision on the applicant’s request within 15 working days from the date of furnishing of the additional request.
4. Post the preliminary approval by the FTA, the applicant needs to deposit the prescribed fees (AED 3,000)
5. Applicants will be notified about the status of their form, either approved or rejected, within 20 working days post the preliminary approval by the FTA.
6. An applicant whose application is finally approved by the FTA is added to the list of registered Tax Agents for a period of 3 years after which the license has to be renewed.
When can the FTA revoke a person’s Tax Agent permit?
A registered Tax Agent’s permit can be revoked in the following circumstances:
- The FTA finds that the Tax Agent is not qualified as per the standards and specifications set by the FTA.
- The Tax Agent’s does not uphold the integrity of the tax system and works against it.
- The Tax Agent does not abide and wilfully violates the Tax Law
In case a Tax Agent’s registration is revoked, the Tax Agent will be notified within five working days by The FTA. The five working days are considered only considered from the day the revoked order was in effect.
Under the new VAT law in UAE, the role of a Tax Agent attracts great importance and responsibility. The VAT is a completely new source of revenue for the UAE, the first time taxpayers can benefit greatly from the services of Tax Agents. A Tax Agent will act as a single point of contact between the FTA and the Taxpayer. Tax Agent can facilitate easy and error-free tax compliance for Taxpayers.
A Tax Agent can also represent the Taxable Person in matters of conflicts related to compliance. Hence, persons interested in becoming Tax Agents under UAE VAT can follow the process mentioned above to become registered and licensed Tax Agents.