The United Arab Emirates (UAE) has applied taxes for the first time with Excise Tax being introduced from 1st October 2017 and Value Added Tax (VAT) was introduced in UAE on 1st January 2018. The Federal Tax Authority (FTA) is chargeable for all administrative and collection of taxes in the UAE.
Tax is a mandatory contribution that is paid by the citizens of any nation to the government so that it can provide the essential public services.
A tax consultant is a person or an organization that helps business entities and individuals to understand and deal with the taxation structure, and reveal the legal ways of paying less tax.
Taxes are a critical source of revenue for the government of a country.
Let’s understand what a tax consultant is and why are the services of a tax consultant required in the current times.
Tax Consultants in UAE
Dealing with tax and filing tax returns is a complex process, that’s why business needs tax consultants to assist them regarding tax matters
- Tax consultant acts as a better option that makes us aware of the taxation policy of the specific nation. Tax consultancy services in UAE include tax preparation, tax analysis, submission of tax returns and tax payments.
- A tax consultant can help the individuals as well as business concerns to advise on the taxability of transactions and to ensure that the business is complying with the UAE VAT Laws.
- A tax consultant/agent raises awareness and helps businesses to stay true with the VAT regime whilst an appointed tax agent can act as an intermediary between the FTA and the business.
- Tax consultants also assist businesses in registering in time and ensuring that they meet the registration criteria.
- By using their expertise, tax agents and consultants assist businesses to avoid errors, claim rightful input taxes to maximize profits.
- Guidance on VAT administrative procedures like VAT Reconsideration and Clarification.
- Appointed Tax Agents are also able to assist businesses with tax audits & Conducting VAT Pre-Tax Audit (VAT Health checkup)
Tax Agent in UAE is not mandatory, but they will be crucial in various situations. FTA issues new clarifications and conducts discussions on VAT on regular basis which you may not be aware of. The tax agent in UAE will keep us informed about those changes and address any queries or doubts on your behalf and help your business to have compliance without any errors.
Who are Tax Agents?
“Any Person registered with the Authority in the Register, who is 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 states that a Tax Agent.”
The FTA has set certain criteria for Firms and individuals before they can act as Tax Agents/ Agency. Some of the criteria are set out below. It is FTA’s responsibility to ensure that capable and qualified individuals act as Tax agents so that they are equipped to advise businesses in the UAE.
- The individual needs to have practical experience of three years in taxation, accounting, or the law.
- Proficiency in both Arabic and English languages.
- Should have qualifications such as Bachelor’s or Master’s degree in tax, law, or accounting from an accredited educational institution.
- The individual needs to take the FTA tests and pass them.
- Physical fitness to undertake the duties and responsibilities as a tax agent.
- The person also needs to hold professional indemnity insurance.
- Must possess a clean record with no crime or misconduct.
Benefits of Hiring Tax Consultant
- Gain the expertise of professionals in dealing with VAT
- Avoiding legal complications
- Helps in VAT planning
- Let you focus on core fields of your business
- Proper guidance on the VAT penalties
- In-depth understanding of VAT laws
- VAT consulting help desk via personal meetings, calls and emails.
Why choose RVG?
RVG provides highly qualified and experienced chartered accountants as tax advisers who have relevant industry-specific experience in taxation complying with UAE Laws to prepare books of accounts and to meet the VAT filing requirements for your business.
We provide you with a VAT Impact Study report comprising key recommendations, Transaction analysis as well as other aspects that will enable you to implement VAT successfully.