GCC Indirect Tax Weekly Digest

UAE FTA publishes Issue 2 of its Taxable Person Guide for Value Added Tax

The United Arab Emirates (UAE) Federal Tax Authority (FTA) has published Issue 2 of its Taxable Person Guide for Value Added Tax, which updates the contents of March’s Issue 1. It serves as the main FTA VAT reference document for taxable persons in the UAE.

It covers a wide range of topics, including an introduction to VAT and how it works, registration, taxable supplies, zero-rated and exempt supplies, place of supply, imports, VAT recovery, and documentation requirements.

Of interest, this issue sets out that while VAT-registered agents who make supplies on behalf of a principal can issue invoices using their own details, the invoices should contain a reference to the principal, including its name and TRN.

UAE FTA adds tax agent feature to website

The UAE FTA has added a feature to its website allowing taxable persons to link their account to an accredited tax agency.

The tax agency, once linked to a taxable person’s account, will be able to perform tasks on their behalf, including registration, submitting tax returns, and completing tax transactions. The taxable person will be able to access real-time updates while the tax agent performs these tasks.

Taxable persons seeking such services should be aware that tax agents are subject to strict requirements, which include the following:

• Hold an accredited qualification from a recognized university/institution – this can be either a bachelor’s or master’s degree in tax, accounting or law, or a bachelor’s degree in any field plus an internationally recognized tax certification
• At least three years of experience as a tax professional, qualified lawyer, or accountant
• Ability to communicate orally and in writing in both Arabic and English
• Pass any tests to meet qualification standards specified by the FTA
• Ability to prove good conduct and lack of criminal record
• Be medically fit to perform the duties of a tax agent
• Hold professional indemnity insurance or be covered by one

Importantly, taxable persons should be aware that they remain ultimately legally liable for any dealings with the FTA, and will be liable for penalties for any violations, even if the action was committed by a tax agent acting on their behalf.

Further details on these requirements and the process of linking a taxable person to a tax agency can be found in the tax agents and tax agencies user guide.

For more information about tax agents in the UAE, please reach out to one of our contacts listed below or your usual Deloitte contact.

Please note that this digest is for information purposes only and should not be construed as an advice. It does not necessarily cover every aspect of the topics with which it deals. You should not act upon the contents of this alert without receiving formal advice on your particular circumstances.