Excise Tax Registration Services
Registering for excise tax in the UAE is compulsory for businesses involved in the production, storage, or importation of excise goods. It is essential to complete the Federal Excise Tax UAE registration within 30 days from either the business opening or the law’s effective date, whichever comes first. Any business cannot engage in excise goods transactions until officially registered for excise tax in the UAE. Some instances may require registration, even if a business is not a producer or importer of excise goods. This includes cases where a business is a pre-existing stock piler of excise goods before the introduction of the UAE federal excise tax or if it issues excise goods from a Designated Zone without proper registration for UAE Excise Tax. MAK stands out as a leading provider of accounting and bookkeeping services in the UAE, offering seamless assistance for excise tax registration.
Excise Tax
Excise tax constitutes an indirect tax imposed on specific goods known as “excise goods,” commonly recognized for their detrimental effects on human health or the environment. The introduction of Excise tax in the UAE took place in 2017.
The primary objective behind implementing excise tax in the UAE is to curb the consumption of unhealthy and environmentally harmful commodities. Additionally, the tax serves as a means to generate government revenue, which can then be allocated to essential public services.
As outlined in the UAE Federal Decree-Law No. 7 of 2017 on Excise Tax, businesses are obligated to register for excise tax. The deadline for company registration was set for November 30, 2019, while stocks were required to complete their registration by January 15, 2020.
Excise goods that require registration encompass the following categories:
- Carbonated drinks, comprising any aerated beverage with the exception of unflavored aerated water.
- Energy drinks, referring to beverages marketed or sold as energy drinks and containing stimulant substances for mental and physical stimulation.
- Tobacco and tobacco products.
- Electronic smoking devices and tools.
- Liquids used in such devices and tools.
- Sweetened drinks.
Rate of excise tax
According to Cabinet Decision No. 52 of 2019 on Excise Goods, the rate of the excise tax is as follows:
- Carbonated drinks: 50 percent.
- Tobacco products: 100 percent.
- Energy drinks: 100 percent.
- Electronic smoking devices: 100 percent.
- Liquids used in such devices and tools: 100 percent.
- Products with added sugar or other sweeteners: 50 percent.
New excise list and tax rates
- Sweetened drinks: 50 percent.
- Electronic smoking devices and tools: 100 percent.
- Liquids used in electronic smoking devices: 100 percent.
Minimum price for Tax Registration
A minimum price of Dh0.40 per individual cigarette must be enforced, and for water pipe tobacco, ready-to-use tobacco, or similar products, a minimum price of Dh0.10 is required.
How to register for excise tax?
To register for excise tax in the UAE, the online process is facilitated through the FTA portal. If you are a business owner seeking excise tax registration, you can complete the process via the e-services section on the FTA website. The steps are outlined as follows:
- Create an e-Services account with the FTA:
- Sign up using your e-mail address and a unique password within the 6-20 characters range.
- Verify your e-Services account.
- Log in to your account.
- Understand the icons and symbols on the registration form.
- Confirm by clicking the button ‘Click here to confirm.’
- Proceed to initiate the Excise Tax Registration Form.
- Fill in the required fields by providing accurate answers to the questions on your Excise Tax registration, amendment forms, and the de-registration application.
- Once you are satisfied that all the information is correct, click on ‘Submit for Approval.’
For general queries regarding tax registration or application, individuals can reach out to the Federal Tax Authority using the inquiry form, email, or a phone call.
Regarding the deadline for tax registration, there is no specified threshold for excise tax. Hence, any corporation planning to engage in the mentioned activities must complete the registration process before the introduction date. Excise duties on the expanded list became effective on December 1, 2019, and strict adherence to registration requirements is compulsory.
Completing tax registration in a timely manner will prevent stakeholders from encountering fines or obstacles that may arise due to delayed or unsuccessful registration.
Who should Register for Excise Tax?
All businesses involved in the following activities are obligated to undergo Excise Tax registration:
- Companies participating in the importation of excise goods into the UAE.
- Companies involved in the production of excise goods released for consumption within the UAE.
- Companies engaged in the stockpiling of excise goods in the UAE under specific circumstances.
- Warehouse keepers responsible for overseeing an excise warehouse or designated zone.
Securing appropriate excise tax advisory services is crucial to comprehend the fundamental procedures and required documents for the activity. When undertaking the excise tax registration process in Dubai and across the UAE, it is advisable to organize various documents relevant to the registration procedure. Having the following documents prepared will streamline the tax registration process:
- Passport copies of the manager, owner, and senior management.
- Emirates ID of the manager, owner, and senior management.
- Trade license.
- Certificate of Incorporation (if applicable).
- Customs number issued by the Customs department (if applicable).
- Authorized signatory documents.
- Articles of Association/Partnership Agreement/Club or Association Registration/Law or Decree (if applicable).
- Bank account details.
- Business details, including:
- The role for which you are registering for excise tax (producer, importer, etc.).
- Details of the excise goods the business is involved in.
- Customs Authority registration (if applicable).
- The TRN if you have registered for excise tax in another GCC State.
MAK for Excise Tax Registration Services
MAK conducts an analysis of your business nature to determine the necessity of tax registration and makes informed decisions accordingly. With a team of proficient tax consultants in the UAE boasting extensive experience in diverse fields, MAK is well-equipped to assist you with excise tax and various other tax accounting services. The expert tax specialists at MAK guide you through all the necessary procedures to ensure compliance with the law. They facilitate the completion of required documents for the tax registration process, alleviating you from the associated complexities.