Every single business entity in UAE that stocks, produces or imports excise goods or planning to do so in future, , is necessary to get registered under the federal Excise tax, UAE. It’s a little complicated process and you can approach to various prominent tax consulting services, offering excise tax registration services in Dubai.
Rules for the Registration
A businessman will be required to get registered under the Excise tax rules, even if he is not a producer or importer of excise goods. If you’re a stockpiler of excise goods, even before the introduction of the federal excise tax rules, you need to get registered. And if you’re not registered under UAE Excise Tax but issuing excise goods from a designated place, the activity is taxable. The rule strictly prohibits any taxable activity, unless registered under the Excise tax. If you find any complications in registration, prominent tax consultants are offering excise tax registration services in Dubai.
Procedure for the registration
Any business that is involved in the above said activities is liable to register under the Excise tax but an entity may be entitled for the registration exemption, if the Federal Tax Authority (FTA) deems it acceptable that you’re not releasing or importing excise goods from a designated zone. Even if you possess a tax registration number, you still need to get registered under Excise tax and a different Tax Registration Number (TRN) will be issued, following successful submission of the application. Look for a recognized excise tax registration service in Dubai.
One TRN for one entity
The Government issues one TRN for one entity under Excise tax regulations and the responsibility of having no duplication lies on the business owner. . You can use online registration facility, provided by the Federal Tax Authority (FTA). The estimated time for excise registration procedure is just 20 minutes. If you’re still facing any problem in the submission of the application, get connected to any prominent excise tax registration services in Dubai.
Contact For Consultant
Excise tax registration in UAE is mandatory for businesses engaging in activities related to the production, importation, stock pilling, and release of excise goods in a particular zone. Excise tax is an indirect tax levied by the UAE government on certain goods that are considered harmful to humans or the environment. The main reason to levy this tax is to reduce the consumption of these goods and raising income for the government that can be used for the general public. The tax was initially implemented on 1st October 2017 through Excise Tax Federal Decree Law No (7) of 2017.
After two years, a few more products were added to the list of excise tax by the Cabinet Decision No. 52 of 2019. Excise tax registration was also mandated that all the taxable goods must be registered for Excise Tax in the UAE through FTAs online portal. Some of the products listed under Excise Tax are –
- Carbonated Drinks
- Energy Drinks (that may contain stimulant that provide mental and physical stimulation)
- Tobacco and Tobacco Products (all items istes with Scedule 24 of GCC Common Custom Tariff, including e-cigarettes)
- Electronic Smoking Devices and Tools (regardless of its tobacco or nicotine content)
- Sweetened Drinks (Any beverages in which artificial sweetener or other source of sugar is added, as determined under Standard 148 and Standard 995 of the GCC Standard Organizaion).
Note – Any powder, gel, concentrate, extract, or any other form that can be converted into a beverage is also considered in the list of excise goods.
These products are subject to a “sin tax” that is intended to deter consumption, with taxes ranging from 50% to 100% of retail prices. Any company that handles these products, whether it be through production, importation, storage, distribution, or transportation, is liable for excise tax excise tax registration UAE. This covers producers, distributors, wholesalers, retailers, and customs warehouses of excisable goods.
Who Must Go For Excise Tax Registration in UAE?
Businesses and individuals in the UAE must register for excise tax if they are involved in –
- Stockpiling excise goods
- Importing excise goods to the UAE
- Producing excise goods released for consumption in the UAE
- Supervising an excise tax warehouse or designated zone as a warehouse keeper
Excise goods include tobacco products, energy drinks, carbonated drinks, electronic smoking devices, liquids used in such devices, and sweetened drinks. There is no registration threshold for excise tax. Businesses must register within 30 days of starting operations or the effective date of the law, whichever is earlier.
Individuals who import excise goods infrequently (less than once every 6 months) may be exempt from registration but will still need to pay excise tax on imports exceeding the duty-free threshold.
Latest Update on Excise Tax in UAE
Major adjustments that take effect in 2024 include:
- More commodities added to excise tax list – electronic smoking devices, sweetened beverages
- More zones have been designated; the Jebel Ali Free Zone is now included for tax-free pre-import storage of products.
- E-invoicing is required; digital invoices created using the FTA system
Here are the information and documents required for excise tax –
- Details of the company’s legal requirements.
- Bank account details.
- Business activities and related information.
- Custom registration details.
- Authorized signatory details and documents.
- List of excisable goods with which the company is dealing.
Process of Excise Tax Registration
The process of excise tax registration in the UAE involves several steps –
- Authentication: The taxpayer or their representative logs in to the Taxpayer Portal using their username and password, mobile, or ID card.
- Adding Places of Activity: The taxpayer adds all places of activity related to excise goods, including the type, location, and business activity.
- Submitting the Application: The taxpayer submits the application for excise tax registration, which is then reviewed by the Federal Tax Authority (FTA) for any errors or missing information.
- Verification and Approval: The FTA verifies the application and notifies the taxpayer of their new Tax Registration Number (TRN) upon approval.
To facilitate this process, 24A Plus can help by providing a step-by-step guide to excise tax registration, ensuring that all necessary documents and information are collected and submitted correctly. This includes –
- Document Preparation: 24A Plus can assist in preparing the necessary documents, such as the passport copy, Emirates ID, trade license, and other official records.
- Business Details: The platform can help in providing the required business details, including the role in which the business is registering for excise tax and the details of the excise goods involved.
- Portal Navigation: 24A Plus can guide users through the Taxpayer Portal, ensuring that all fields are correctly filled and the application is submitted successfully.
With 24A Plus, you can streamline their excise tax registration process, ensuring compliance with UAE regulations and minimizing the risk of errors or delays.
Why Choose 24A Plus for Excise Tax Registration Services in Dubai?
Choose 24A Plus for excise tax registration in Dubai because it provides a streamlined and efficient process. We help you with a complete registration process, ensuring all necessary documents and information are collected and submitted correctly. We also helps in preparing the required business details, including the role in which the business is registering for excise tax and the details of the excise goods involved.
Additionally, as the best excise tax registration service provider, 24A Plus help you understand the Taxpayer Portal, ensuring compliance with UAE regulations and minimizing the risk of errors or delays.
Need help with excise tax registration UAE? Contact us for the easiest processing. We will be more than happy to assist you.
FAQ
What is excise tax?
Excise tax is a form of indirect tax levied on specific goods that are typically harmful to human health or the environment. In Dubai, it is imposed on items such as tobacco products, energy drinks, and carbonated beverages.
Which goods are subject to excise tax in Dubai?
In Dubai, excise tax is imposed on the following goods:
- Tobacco products (100% tax rate)
- Energy drinks (100% tax rate)
- Carbonated drinks (50% tax rate)
- Sweetened drinks (50% tax rate)
- Electronic smoking devices and tools (100% tax rate)
When was excise tax introduced in Dubai?
Excise tax was introduced in Dubai on October 1, 2017, as part of the UAE government’s efforts to reduce the consumption of unhealthy goods and generate additional revenue.
Who is responsible for paying excise tax?
The excise tax is typically paid by the producer or importer of the taxable goods. However, the cost is often passed on to consumers through higher retail prices.
How is excise tax calculated?
Excise tax is calculated as a percentage of the retail selling price (excluding VAT). The specific percentage varies depending on the type of product. For example, the excise tax rate is 100% for tobacco products and energy drinks, and 50% for carbonated drinks and sweetened drinks.
What is the purpose of excise tax?
The primary purposes of excise tax are to discourage the consumption of harmful products, promote healthier lifestyles, and generate additional revenue for the government to fund public services and infrastructure projects.
How does excise tax affect businesses in Dubai?
Businesses that produce, import, or sell excise goods must register with the Federal Tax Authority (FTA) and comply with the excise tax regulations. This includes maintaining accurate records, filing periodic tax returns, and paying the due tax. Non-compliance can result in penalties.
Can consumers claim a refund on excise tax?
Generally, consumers cannot claim a refund on excise tax. The tax is included in the retail price of the goods and is non-refundable. However, certain exceptions may apply for specific scenarios such as the export of goods outside the UAE.
