Why you Should Hire a Tax Agent in UAE?
Jay krishnan, Partner
VAT has imposed many challenges on businesses in UAE. Even though it’s been almost a year since VAT came into effect in UAE, people still find it difficult to adjust to the scenario. A tax agent will help you smoothen VAT process and will act as a mediator between you and Federal Tax Authority.
Although a tax agent is not mandatory, they can be truly beneficial in various aspects. Dealing with tax affairs and approaching FTA is not within the limit of most of us. Hence, appointing an expert is a feasible option.
So, what are the roles and responsibilities of a tax agent? The answer is many. They aid in achieving tax compliance, carrying out legal activities, managing records and preparing and filing VAT return. They enable and guide taxable persons to perform activities of compliance under VAT. And yeah, not to forget how they help you deal with FTA, post penalization.
For a person who is remotely managing his business, a tax agency can be of immense help.
You need not worry about the confidentiality of any information related to your company, as a tax agent understands the value of privacy in the corporate world. Your company data is always safe in the hands of a tax agent. Tax agents are reliable and ethical. They refuse to get involved in any work or plan which may result in a breach of law by any person or which may question the integrity of the tax system.
FTA issues new amendments to laws and clarifications on tax on a periodical basis, which clients may not be aware of. A tax agent will be updated with the legal changes and there are nil chances of non-compliance of the new provisions. This eliminates the possibility of penalties. On the other hand, if you are facing penalization right now, do not hesitate to approach a tax agent. It’s not late.
You can get penalized for diverse reasons; if you do not maintain the required documents or if you do not submit documents upon FTA’s demand and yeah many more. A tax agent cannot help you from paying fine, but they surely can follow up with FTA and guide you on the next step.
Off late, the UAE government has announced a VAT refund scheme for tourists. For this, a retailer need to issue an invoice on VAT and this involves a set of procedure. A tax agent can help retailers comply with the scheme.
The UAE government makes it a point to continuously develop its services so as to ensure seamless running of businesses. The same applies in the case of tax agents as well; UAE taxpayers can connect directly with accredited tax agents, via a government website. This has been made possible by FTA. Taxable persons can link their accounts with an accredited tax agency and authorise it to conduct registration procedures, submit tax returns and complete transactions. Tax agents are key contributors to the successful implementation of the tax system in the UAE, we do not have any doubt about it. But, appointing the right one is indeed a tough call.
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HLB HAMT Partner Jay Krishnan, has detailed some important updates on VAT applicability for real estate, medical equipment, ESR and excise tax in our latest edition of our Insight supplement.
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