The landmark Federal Law Number 7 of 2017 was issued last 11th of June this year by the President His Highness Sheikh Khalifa bin Zayed Al Nahyan regarding the value-added tax (VAT) procedures in the United Arab Emirates (UAE). The foundations were laid in the tax system, and the Federal Tax Authority’s function in this new regime was also expounded.
With the impending VAT implementation in the UAE, there are a lot of things that should be learned by people that can definitely help them in making it easier to deal with the tax system. Aside from VAT procedures and registration in the UAE, a businessman should also be aware of what Tax Agent is. Among the regulations and procedures stated in the Law, the role of the Tax Agents is also established, providing specific requirements regarding Tax Agents.

Identifying a Tax Agent

Article 1, Chapter 1 of the aforementioned law has the definitions and scope of applications of the law. Among the definitions, “Tax Agent” is explained as “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.”
Basically, Tax Agents are people who can represent taxpayers, interacting with the Federal Tax Authority (FTA) directly.

Meaning of “Register of Tax Agents”

Federal Tax Authority shall have a Register of Tax Agents that have all the information about the agents, wherein important matters regarding them are filed based on Article 12, Part 2, Chapter 3 of the same law.

Registered Agents

The preparation for the upcoming VAT in the UAE is on the rise and many are in need of help but not everyone can pose as a Tax Agent. In light of this, according to Article 13, Part 2, Chapter 3 of this Law, the person needs to be in the Register and be licensed by the Ministry of Economy and the competent local authority for the profession. Therefore, it is important to conduct checks and inspection as some could be scammers that would put people at risk.

How to be a Legit Tax Agent?

There are a couple of conditions to be fulfilled before being a Tax Agent as per Article 14, Part 2, Chapter 3 of the law.

The following below should be met by the people that are planning to be Tax Agents:
1. It is important for a Tax Agent to have good conduct and behavior and never have been convicted of a crime or misdemeanor prejudicial to honor or honesty, notwithstanding that he may have been rehabilitated
2. It is also important for a Tax Agent to hold an accredited qualification from a recognized university or institute showing his specialization and practical experience as specified in the Executive Regulations of this Law.
3. In addition, it is essential for a Tax Agent to be medically fit to perform the duties of the profession.
4. And it is important for a Tax Agent to hold professional indemnity insurance.
When a Tax Agent has ceased in practicing his profession as a Tax Agent due to some hindrances, the FTA must be notified of the period when he stops doing so. A request may be submitted to the FTA to resume practicing as a Tax Agent when the aforementioned hindrances have concluded.
Procedures for listing a Tax Agent in the Register and the rights and obligations of the Tax Agent before the Authority and the Person shall be specified in the Executive Regulations of this.

Appointing a Tax Agent

In accordance with Article 15, Part 2, Chapter 2 of this Law, a Tax Agent may be appointed by someone to represent him directly to the FTA on his behalf, handling his tax affairs without harming the person’s responsibility to the FTA.
The FTA is not authorized to deal with a Tax Agent when the former is informed by the person that the latter is representing that the contract has ended between the person and the Tax Agent’s agency or if the Tax Agent has been dismissed

Your Records with the Tax Agent

The Tax Agent will have stored the person’s information, and as per Article 16, Part 2, Chapter 3 of this Law, when it requested by the FTA, the Tax Agent must give all the information, documents, records, and data required for the said person.

The FTA also has the right to use the documents or records of a person that is with the Tax Agent for tax audit purposes, even if the Tax Agent has been dismissed or their contract has expired.

Since the Tax Agents do all the tasks for the person or business, it will be easier for them. Hence, if you are searching for VAT consultants in Dubai or even in the whole UAE, we at Genome can conduct a consultation with you and act as your Tax Agent, handling all your tax affairs and representing you directly to the FTA. You can contact us and book a consultation here.

VAT IS ON THE WAY! NOW REGISTER ONLINE FOR VAT WITH UAE FEDERAL TAX AUTHORITY

Beginning of the Tax Regime in UAE

Before the announcement of Tax Procedures, there has been extensive researches and studies on the part of the government, making sure that everything will be relatively easy for everyone in the country.
Since the landmark Federal Law Number 7 of 2017 regarding Tax Procedures was issued by Shaikh Khalifa Bin Zayed Al Nahyan last June of this year, it laid down the foundations of the tax systems that would soon be executed in the United Arab Emirates (UAE) starting 1 January 2018. This will mark UAE and Saudi Arabia as the first countries that are part of Gulf Cooperation Council (GCC) that will implement VAT.
Coming mid of September, the start of the registration will happen for all firms that fall under the minimum annual income of AED 375,000. There are about 350,000 businesses that are expected to register under this new regime.
The registration will be done on Federal Tax Authority (FTA)’s website. The well-established and financially sound companies will be first-in-line in the registration along with those firms that are producing and importing products that will have the excise tax on—tobacco, energy drinks, and carbonated drinks.

Pay your Tax! Online VAT Registration Facility by Federal Tax Authority

There have been a lot of questions arising from the business world regarding the implementation of value-added tax (VAT), and the Ministry of Finance’s website has been updating its VAT page for recent information to satisfy the enquiries of UAE residents.
The federal tax authority has launched an online system on an official website that will be providing a facility for the businesses who exceed mandatory and voluntary VAT registration thresholds.
Business is basically involved and ongoing in any form of the following such as industrial, commercial, professional, trade, etc.
VAT returns must be filed by the business within 28 days from the end of the tax period (according to the procedures identified clearly in the VAT legislation) with the FTA on a regular basis—this is still depending on the FTA’s decision; it can be quarterly or for a shorter period. There will be e-services online that will be provided by the government and tax returns shall be filed there. Also, a business can choose to register for VAT regardless if they don’t meet the minimum annual income but they go beyond the voluntary base that is AED 187,500. On the other hand, if the minimum about for the voluntary registration is surpassed by a business’ expenses, they can register voluntarily as well. New companies (which are beginning to develop and without turnovers) are encouraged in this kind of opportunity, enabling them to register for VAT.

a) Mandatory Registration

Any business is required to register if they fall into the following classifications:

For over the 12-month period, the taxable supplies of the business go beyond the mandatory registration threshold, or
The business expects to make taxable supplies in the next 30 days that will have a value that is more than the mandatory registration threshold.
The amount of mandatory registration threshold is AED 375,000.

b) Voluntary Registration

Any business that doesn’t meet the mandatory registration criteria and falls into the following classifications may opt for voluntary registration:

In the previous 12-month period, their taxable supplies or taxable expenditure are worth more than the voluntary registration threshold, or
The business expects for their taxable supplies or taxable expenditure for the next 30 days to be worth more than the voluntary registration threshold.
The amount for the voluntary registration threshold is AED 187,500.

What are Taxable supplies?

To understand further if you are obligated to be registered, the definition is as follows. If there is a supply of goods or services that are done in the UAE and have the possibility of being taxed at either 5% or 0%, this is a taxable supply. Even imports are taken into consideration as taxable supplies if they are made in the UAE.

How can the Tax system help in boosting UAE Economy?

There have been some declines in oil revenues for over the last three years, and it has been a trouble for every country. In executing VAT, it is expected that the economy of the UAE will be strengthened even more, making it one of the advanced competitors in the world.
The budget that will be created from VAT will aid the government in giving better services and strongly support the country’s healthcare, education, and infrastructure projects, helping those aspects of the country to develop.
Admittedly, having a tax is a notion that is new to everyone in the UAE, since the country has been free of tax for years. It could be confusing and difficult to grasp, hence, genome offers its helping hand to you to get prepared for VAT, from registration to file the tax returns, we are offering VAT registration, VAT Consultancy & VAT Accounting Services in UAE.

WHO ARE TAX AGENTS? HOW THEY CAN HELP YOU IN IMPLEMENTATION OF VAT SYSTEM