What goods does excise tax cover in the UAE?

Excise tax covers tobacco, soft drinks, energy drinks, and electronic cigarettes.

When can the FTA deregister my business for excise tax?

The FTA can deregister your business if you stop operations for 6 months or if it protects the tax system.

Can I get a refund if I export excise goods but am not registered for excise tax?

Yes, from June 1, 2024, non-taxable persons can claim refunds for exported excise goods.

What happens if my company doesn’t keep good records of excise goods?

The FTA may treat all your goods as surplus and make you pay extra tax.

How can Mubarak Al Ketbi (MAK) Auditing help my business?

MAK Auditing helps with registration, compliance, audits, export exemptions, and refunds for excise tax.

Excise Tax UAE: Key Amendments & Compliance Guide

The United Arab Emirates keeps updating its tax rules to improve the business environment and help the country grow. The government brought new changes to the Excise Tax Executive Regulations on December 1, 2023. These changes show that the UAE wants to make tax rules better and fair for everyone.

Businesses and individuals must learn about these new rules so they can follow them and avoid any penalties. In this article, you’ll get to know the main points of the new excise tax amendments and how you can stay compliant with the help of Mubarak Al Ketbi (MAK) Auditing.

What Is Excise Tax in the UAE?

The UAE government charges excise tax on certain goods that can be harmful to people’s health. Some of these goods include:

Tobacco products
Carbonated drinks and energy drinks
Electronic cigarettes and vaping liquids

The excise tax rate can go up to 100%. The goal is to make people use fewer unhealthy products and raise money for the community’s welfare. Any business that imports, makes, sells, or stores these goods must register for excise tax and follow all the rules.

What Are the New Amendments to Excise Tax?

The UAE updated many rules in the Excise Tax Executive Regulations. These are some key changes you need to know:

More Definitions: The new rules add words like “official evidence,” “commercial evidence,” and “shipping certificate.” These words match the VAT rules in the UAE and help everyone understand what documents are needed.
FTA Power for Deregistration: The Federal Tax Authority (FTA) now can deregister a business for excise tax without the business asking for it. This happens if the business stops working for more than 6 months or if staying registered would harm the tax system’s honesty.
Stockpile Audits: Companies now must keep clear, audited records of all excise goods they store. If you don’t do this, the FTA can treat your stock as surplus, and you’ll pay extra tax.
Export Exemption: If you export excise goods and want to get an exemption from excise tax, you need more documents than before. Customs departments will now check your papers to make sure your export is real.
Refunds for Non-Taxable Persons: Starting from June 1, 2024, people or businesses who aren’t registered for excise tax but export excise goods can claim a refund on tax they already paid.
Designated Zones Compliance: If a designated tax zone does not follow the rules, it will be treated like the UAE mainland for tax purposes.
Deduction on Exported Goods: You can deduct excise tax on exported goods if you provide the right evidence.
Natural Shortages Rule: Goods lost due to natural reasons (like fire or breakage) won’t count as ‘released for consumption’ if you meet all the rules.

How Do These Changes Affect Businesses?

Every business that deals with excise goods in the UAE must:

Register with the FTA if they import, make, or store excise goods
Keep perfect records of all goods
Collect and show the right documents for exports
Get ready for possible audits by the FTA
Apply for refunds on exported goods, if eligible
Check compliance for all designated zones

If you don’t follow the new rules, you may face audits, extra taxes, or even forced deregistration.

What Are the Benefits of Following the New Excise Tax Rules?

You keep your business safe from penalties and audits.
You show your partners and customers that you’re responsible.
You can claim refunds if you export excise goods.
You help your business grow without worrying about tax troubles.
You keep your company’s reputation strong in the UAE market.

Steps to Register and Stay Compliant

If your business handles excise goods, you need to:

Register for excise tax with the FTA.
Keep records of all goods and transactions.
Stay updated with any changes in tax rules.
Prepare all documents needed for export exemptions or refunds.
Work with experts like Mubarak Al Ketbi (MAK) Auditing for tax advice.

How Mubarak Al Ketbi (MAK) Auditing Can Help You

Mubarak Al Ketbi (MAK) Auditing guides businesses through the excise tax process in the UAE. Our experts help with registration, record-keeping, and understanding all new amendments. If you need to claim refunds, we show you the right steps and documents to use. Our team helps you stay up to date with any new tax rules.

When you let us handle your excise tax, you can focus on growing your business. Remember, with us by your side, you’ll find that “a stitch in time saves nine!”