Few definitions that tax agents must know

There are several VAT consultants Dubai and more people want to go in this industry because of the added benefits and other facilities given to the agents. To get a job you should have good communication skill and a calm behavior then you can apply to different accounting and auditing firms in Dubai to become their agent. If you are new to this field then you need to know about the basic definitions about different terms used in this field and here is a quick glance of these definitions for you:

Principal: First of all you need to understand that who is a principal. He can be the buyer or the seller but the main definition is that any person who is legally represented by another person is called a principal. He has all the rights to determine the price and other specifications of the product when he is the seller and he is the one who is going to hire an agent for representing his products to the market.

Agent: An agent is the person who represents another person legally. There is a complete contract between both agent and principal to determine about the roles and responsibilities of both. An agent can never use his own name while selling a product and also he cannot be able to get payments legally, if a principal wants to grant this role then he will mention this in the contract otherwise of any amount is given to the agent will not be recovered.

Agency relationship: It is a relationship in which starts when one person acts on the behalf of another. This relationship is written and a contract is signed to keep it legal and in case of any breach the default person can be sued by the other one.

Apparent agent: When there is an agency relationship and the name of the agent is revealed to the third party or the buyer then this kind of agent is called as the apparent agent because the third party will know about the legal relation of the agent.

Undeclared agent: When the agent is not disclosed in the agency relationship to the third party then the agent is known as the undeclared agent and there is a great chance of fraud when the agent is disclosed because fraudulent people may get advantage of this.