Excise Tax Registration
Excise Tax Registration
An excise tax is a type of indirect tax that is imposed on specific goods that are deemed harmful to society, such as tobacco products and energy drinks. The purpose of the excise tax is to reduce the consumption of these goods and discourage their use, while also generating revenue for the government.
These goods are taxable if imported to the UAE, produced, or stored in the UAE. This tax is only charged on products that are hazardous to people or the environment. The ultimate purpose of this tax is to mitigate the consumption of such goods to prevent unhealthy activities.
In certain contexts, the goods would be physically labeled to show that excise taxes were paid to the government.
Excise Tax Registration in UAE
Excise tax registration in the United Arab Emirates (UAE) is the process by which businesses or individuals engaged in certain activities or selling certain products are registered with the Federal Tax Authority (FTA) and are required to pay excise tax on those products. An excise tax is a tax on certain goods that are considered harmful to public health or the environment, such as tobacco, sugary drinks, and energy drinks.
Registered businesses must file excise tax returns on a regular basis and pay the tax due on their excise goods. Failure to register for excise tax or to pay the tax due can result in penalties and fines imposed by the FTA. Our Excise Tax Consultants in UAE help you to register, submit audit and file your tax returns effectively with 100% compliance through the best Excise Tax Advisory Services.
Excise Tax is calculated based on the excise price. The excise price is the higher of the price published by the FTA in a standard price list if available and the designated retail sales price for the excise good less the tax included therein.
Who is required to register for Excise Tax?
Businesses engaging with the following activities will be subjected to excise tax registration,
- Importing excise goods to the UAE
- Producing excise goods released to be consumed in the UAE
- Stockpiling the excise goods
- Whoever is responsible for overseeing the excise warehouse or specific zone, such as the warehouse keeper
FTA provides high-end support and guidance to assist with this task, although it is the responsibility of the business to ensure the fulfillment of the required compliance. FTA can conduct audits of taxable corporates, thus imposing penal measures on those not complying with the law.
Documents required for Excise Tax Registration in UAE
- Emirates IDs of the top management, owner, and manager
- Trade license
- Declaration of Incorporation (if applicable)
- Authoritative signatures on papers
- Copy of the manager’s, owner’s, and senior management’s passport
- Articles of Association, a Partnership Agreement/Club or Association Registration/Law or Decree (if applicable)
- Bank account information
- The Customs number (if applicable)
- The TRN if you have registered for excise tax in another GCC State Information on the excise items that the company deals in. Registration with the Customs Authority (if applicable).
What is Excise Tax Rates in UAE?
The following are the UAE excise tax rates:
Excise Tax Products
Excise Tax Rate
Tobacco Products
Energy Drinks
Carbonated Drinks
100%
100%
50%
How to register for excise tax in the UAE?
To register for excise tax in UAE, the following steps need to be followed:
Create an e-Services account
- Sign up by creating a username/password
- Verify your email address within 24 hours
- Log in to your e-Services account
- Registering for Excise Tax
Click Register for Excise Tax
- Complete all mandatory fields (marked with *)
- Click Submit for Approval once to submit the form
What is the deadline for registration of Excise Tax in UAE?
There is no specific deadline for excise tax registration in UAE, and hence, a corporation willing to be involved in listed activities, must register before the date of introduction, and account for excise tax.
Exemptions for Excise Tax Registration
For those who do not import excise goods regularly, there may be an exemption from the registration requirement. To qualify for this exemption, the individual or business would need to prove that they do not import excise goods more than once in six months or four times in twenty-four months. In other words, if they only import excise goods once every six months or less frequently than that, they may not need to register for excise tax.
However, if an individual or business qualifies for this exemption, they may still be required to pay excise tax on imported goods that exceed the duty-free threshold. The duty-free threshold is the maximum value of goods that can be imported without incurring customs duties or taxes. If the value of the excise goods exceeds the duty-free threshold, the individual or business would still be responsible for paying the applicable excise tax.
Frequently Asked Questions
Businesses or individuals engaged in the production, sale, import, or consumption of goods or services subject to excise tax are typically required to register. Common examples include producers or retailers of tobacco, alcohol, fuel, or vehicles.
The specific goods or services subject to excise tax are defined by the tax laws and regulations of your jurisdiction. Review the relevant legislation or consult the tax authority to determine if your activities fall within the scope of excise tax.
The registration process generally involves completing an application form provided by the tax authority. You will typically need to provide information about your business, such as its legal structure, contact details, and the types of goods or activities subject to excise tax.
The required documents can vary, but common requirements include business registration documents (e.g., trade license, commercial registration), proof of identity for the business owner(s) or authorized signatory, and any specific documentation related to the goods or activities subject to excise tax.
Deadlines for excise tax registration vary by jurisdiction. It’s important to check the specific regulations and adhere to any deadlines specified by the tax authority. It’s generally advisable to register as soon as you engage in activities subject to excise tax.
Failing to register for excise tax when required may result in penalties, fines, or other legal consequences. It’s crucial to understand and fulfill your registration obligations to comply with tax laws.