Guide to Register Excise Tax in UAE

Guide to Register Excise Tax in UAE

Numerous questions today concern the excise tax and how it is calculated. Frequently asked questions about excise tax in the UAE include: how can I register for excise tax? What should I do to prepare for excise tax? And how can you ensure that your company complies fully with UAE excise tax? Here is all the information you need to know about the UAE’s excise tax. An indirect tax known as excise tax is imposed on products that are hazardous to human health. To raise the bar for healthy living, it was implemented across the UAE in 2017. Contact A&A Associates to guide you throughout.

According to UAE federal decree law No. 7 of 2017 on Excise Tax, businesses must register for excise tax. Any corporations interested in the aforementioned products must be registered and have an excise tax account in order to do so. It is an internal tax that is levied on a variety of goods that are bad for the environment and human health, including alcohol, gasoline, tobacco, and carbonated beverages. Excise tax is paid by the manufacturer and wholesaler and is added to the product’s price; buyers do not pay it directly. The UAE government began charging an excise tax in December 2019 on all varieties of e-cigarettes, e-liquids used in e-cigarettes, e-cigarette devices, and sweetened beverages. A&A Associates is here to give you all the information you need to know to register excise tax in the UAE

Who Is Responsible for Filing the Excise Tax Registration?

Within 30 days of the business’s opening or the law’s effective date, whichever comes first, companies engaged in the following processes are required to register for excise tax.

  • Bringing in excisable items into the UAE
  • Producing taxable items for UAE consumption
  • Accumulation of excise products in a specific situation
  • Warehouse manager for excise taxes

Our way of life depends on a variety of goods, including those that must be registered for excise tax:

  • All aerated beverages, excluding plain aerated water, are classified as carbonated drinks
  • Caffeine, taurine, ginseng, and guarana are just a few examples of the stimulant compounds included in energy drinks and other beverages branded or sold as such and that provide both mental and physical stimulation
  • Tobacco and related products

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How Can You Register for an Excise Tax?

The FTA portal is used to register for excise tax. If you want to register for excise tax, take these steps into consideration:

  • Register for an FTA e-Services account: Enter your email address, a special password that is between six and twenty characters, and Check your e-Services account
  • Understand the icons and symbols on the registration form by logging into your account
  • To confirm, press the button
  • To check and begin the Excise Tax Registration Form, click on “Click Here”
  • Fill in the necessary fields on your Excise Tax registration, amendment forms, and de-registration application by giving truthful answers to the questions.
  • Once you are certain that all of the data is accurate, select “Submit for Approval”

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Required Documents for Excise Tax Registration

  • Trade Permit
  • Authorized signatory documents
  • Information about the bank account
  • The function of your company (importer, producer, and supplier)
  • Information on the products you sell
  • Passport photocopy
  • Emirates ID
  • Incorporation Certificate (if Applicable)
  • Details of firm type, sole proprietorship, or partnership
  • TRN registration number for excise tax in another GCC State
  • Registration of custom authority(If Applicable)

What Are the Exempted Goods From Excise Tax?

  • Ready-to-drink beverages containing at least 75% milk, infant food, beverages eaten for dietary reasons, and beverages used for medical purposes are among the items exempt from excise tax. Products are typically charged when they are released or consumed. The maker, manufacturer, or importer of the taxable items will be responsible for paying the excise tax in this case. Instances in which the excise duty will be imposed:

    • When excise goods were being produced, the corporation made the decision to make excise items that were hazardous to human health and the environment
    • When a businessman opted to import items subject to the excise tax for consumption or other manufacturing uses that were hazardous to human health and the environment, the excise tax was applicable

Excise Tax Rates

  • The excise tax rates now in effect under federal law are as follows:

    • 100% of tobacco and tobacco products, and 100% of the liquids used in electronic cigarette equipment and tools
    • 100% of electronic smoking devices and equipment and 50% of carbonated beverages
    • 50% of sweetened beverages and 100% of energy drinks

    Ad valorem and particular excise tax charging are the two options. While specific taxes are fixed monetary amounts on items, ad valorem employs a fixed percentage on specified goods or services. Excise taxes, sometimes known as sin taxes, are occasionally levied on products with substantial societal costs like alcohol and cigarettes. Contact us for hassle-free guidance.

Why Choose Us

With extensive experience in many different industries, A&A Associates’ team of skilled tax consultants in the UAE can help you with excise tax and other tax accounting services. Our tax specialists will assist you in completing all the necessary steps to ensure that you abide by the law. They will assist you in submitting all the necessary paperwork for the tax registration process and relieve you of the risk. Accounting & Bookkeeping Services LLC also competently and on-time manages all Services, Auditing Services, Accounting & Bookkeeping Services, and VAT Consultancy Services, among others, in Dubai. Please get in touch with us. You can get a Free Consultation from our tax professionals to ease your concerns. For more information [email protected].

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