What Does a Tax Agent Do in the UAE?

In the UAE’s evolving tax landscape, staying compliant with Federal Tax Authority (FTA) regulations can be challenging. This is where Tax Agents play a vital role. A Tax Agent is an FTA-registered professional authorised to represent businesses and individuals in all tax-related matters, including VAT, Corporate Tax, and Excise Tax.

While accountants manage your books, tax agents ensure that your tax compliance and filings meet FTA standards — reducing risk, penalties, and administrative stress.

Key Roles and Responsibilities of a Tax Agent

Tax Agents in the UAE perform a wide range of duties to help businesses remain compliant and informed. Their primary responsibilities include:

VAT and Corporate Tax Registration

Tax Agents assist businesses in registering for VAT or Corporate Tax, updating registration details, and applying for deregistration when necessary.

They ensure that the correct legal and trade details are submitted to the FTA to prevent delays or rejections.

Preparation and Filing of Tax Returns

One of the most important roles of a tax agent is to prepare and file accurate VAT and Corporate Tax returns on time.

This includes reviewing accounting data, reconciling figures, and ensuring all taxable transactions are reported correctly — helping businesses avoid fines or penalties for late or incorrect submissions.

Tax Calculations and Adjustments

Tax Agents calculate the taxable income for Corporate Tax purposes by adjusting accounting profits for exemptions, deductions, and non-deductible expenses.

They also verify that VAT input and output calculations comply with UAE tax laws.

Advisory and Tax Planning

Beyond compliance, tax agents provide valuable advisory services, including:

• Explaining VAT exemptions and zero-rated supplies.

• Advising on Small Business Relief and Free Zone benefits under Corporate Tax.

• Helping structure transactions for optimal tax efficiency.

Record-Keeping and Documentation

Under UAE law, businesses must maintain proper accounting records, invoices, and supporting documents for several years.

Tax agents ensure all required documents are organised, accessible, and compliant with FTA audit standards.

Representation Before the FTA

Tax Agents can directly represent their clients before the Federal Tax Authority.

They handle FTA communications, manage audits or disputes, and provide clarifications on behalf of the business — saving time and ensuring accuracy in responses.

Compliance and Risk Management

Tax Agents perform regular compliance reviews to identify potential risks or non-compliance areas.

Their proactive approach helps businesses correct issues early and maintain good standing with the FTA.

Example

A retail company receives an FTA notice questioning discrepancies in its VAT return.

Instead of managing the issue internally, the company’s Tax Agent responds directly to the FTA, provides reconciled documentation, and resolves the matter efficiently — avoiding penalties and saving valuable time.

Summary