Excise Tax Advisory Services

Excise Tax Advisory Services in Dubai, UAE

Excise tax started in the UAE in 2017. Anyone who sells certain products that are bad for people’s health or the environment must pay this tax to the Government. The excise law is for products like energy drinks, soft drinks, and tobacco. Mubarak Al Ketbi is one of the best accounting and bookkeeping companies that helps businesses with excise tax and audits. With the right tax help, you can make sure your excise tax is correct and sent to the tax office on time.
Excise Tax Advisory Services in Dubai, UAE

Excise Tax Advisory Services in Dubai, UAE

Since the excise tax started in the UAE back in 2017, businesses handling goods that are harmful to health or the environment have had to pay this tax. Tobacco, carbonated drinks, energy drinks, and similar products fall under this rule. Mubarak Al Katbi, a leading accounting and consulting firm in the UAE, helps businesses comply with tax audits and reporting. By using reliable Excise Tax Advisory Services, businesses can ensure that their tax liabilities are submitted on time and are accurate as per the law.

What is Excise Tax?

Excise tax is a government charge placed on certain products that people buy, especially those seen as harmful. This tax doesn’t go directly to consumers but is collected from companies. Often, it’s used to raise money for public needs like education or roads.

Cigarettes and other items that are risky to health often carry higher tax rates. Products that help in education or health may have lower taxes. Some regions even add more local taxes on top of this excise tax.

What are Excise Tax Advisory Services in Dubai, UAE?

Excise Tax Advisory Services in Dubai, UAE help businesses understand their duties under the law. Excise tax, a type of indirect tax, is placed on goods like tobacco, alcohol, and fuel to control consumption. These services are helpful for businesses that deal in sectors like oil, gas, tourism, and telecom.

In such industries, rules can be tough and hard to follow. That’s why many firms choose expert consultants like Mubarak Al Katbi, who guide companies on how much tax they owe and how to stay compliant.

Excise Tax Consulting Services in Dubai, UAE

Excise tax is charged on items that can harm health or nature. In 2017, this tax became law in the UAE. The main idea is to reduce the use of these risky products while helping the government earn money for public services.

Every business handling such goods must register under UAE Decree-Law No. 7 of 2017. The first deadline for registration was November 30, 2019, and for stock, January 15, 2020.

If your business handles energy drinks, tobacco, or carbonated drinks, hiring a professional firm like Mubarak Al Katbi for guidance is the smart choice. This way, you avoid issues during tax audits.

Products Registered as Excise Goods

  • Carbonated drinks (except unflavored aerated water)
  • Energy drinks (with substances that stimulate the body and mind)
  • Nicotine and tobacco items
  • E-cigarettes and vaping tools
  • Liquids used in vaping
  • Sweetened drinks

Products Exempted from Excise Tax

  • Drinks with 75% or more milk or milk substitutes
  • Baby formulas
  • Medical drinks or those used for special diets

Mubarak Al Katbi for Excise Tax Advisory Services in Dubai, UAE

Mubarak Al Katbi is a known name when it comes to tax advisory in the UAE. The firm offers guidance for excise tax compliance, helping with everything from tax registration to exemption rules.

The team explains how to file correct returns, use deductions, and understand the entire tax process. They also help businesses manage payments, prepare documents, and avoid delays or mistakes. With expert support, your business can avoid penalties and meet all law requirements.

ur Excise Tax Advisory Services

We offer tailored Excise Tax Advisory Services to help businesses stay compliant and efficient. Our consultants examine every part of your business related to excise goods.

Whether it’s reducing tax bills or filing taxes on time, our job is to make your process smooth and error-free. We keep your records clean, spot any risks, and ensure you follow every rule.

Excise Tax Registration

Registering for excise tax is a legal must. We help you get the permits and approvals needed. Our services include preparing and filing your registration forms and tracking all required documents.

Excise Tax Return Filing

Filing returns on time is vital. Our team helps prepare the data, calculate the tax due, and file everything properly. We help businesses simplify the process while keeping everything in line with UAE rules.

Our Approach to Excise Tax Services

Here’s how we work:

  • Study your rights and rules under UAE law
  • Lower your risks by managing the whole tax process
  • Keep track of all records and filing deadlines
  • Support you in legal matters and disputes
  • Align your data with UAE systems
  • Provide smooth, quick, and clear processes

Excise Tax Deliverables

We offer:

  • Advice on tax handling in Free Zones
  • Assistance with filing tax declarations
  • Registration support for importers, producers, and stockpilers
  • Services for de-registration as well

Who Should Register for Excise Tax?

If your company falls into one of these categories, you must register:

  • Imports excise goods into the UAE
  • Produces excise goods for sale in the UAE
  • Stockpiles these goods
  • Manages a warehouse for excise products

Rights During a Tax Audit in UAE

When an audit takes place, you have these rights:

  • Watch the procedure if documents are removed
  • Get back any documents taken after review
  • Ask for a receipt for anything taken

Excise Tax Rates in the UAE

  • 50% on carbonated drinks
  • 100% on tobacco products
  • 100% on energy drinks
  • 100% on electronic smoking tools and liquids
  • 50% on sweetened drinks

Based on Cabinet Decision No. 52 of 2019:

New Excise Price Minimums

  • Dh0.40 per cigarette
  • Dh0.10 per gram of pipe or loose tobacco

Records to Maintain Under Excise Law

Keep the following:

  • Records of all produced, imported, or held goods
  • Proof of export or out-of-UAE sales
  • Inventory statements and values
  • Tax due on imported or manufactured items
  • Proof of tax paid on exports
  • Monthly sales and inventory details

Tax Compliance and Penalties

The FTA checks all excise goods through their linked customs system. Failure to register can lead to:

  • Dh20,000 for not registering
  • Dh20,000 for failing to report existing stock by deadline

Excise Tax Services by Mubarak Al Katbi

We provide services like:

  • Planning and strategy
  • Document checking
  • Tax accuracy review
  • Physical stock counts
  • Staff training for audits
  • Full support for registration
  • Tax law compliance
  • Timely return filing

Our team makes sure your business is audit-ready and meets all tax laws in Dubai and across the UAE.

Excise Consulting Services

At Mubarak Al Katbi, we also offer:

  • Excise planning
  • Staff awareness programs
  • Return filing help
  • Audit support

Excise Tax in the UAE: A Summary

Excise tax helps reduce the use of harmful products and adds revenue for public spending. This tax covers items like:

  • Cigarettes
  • Sweetened drinks
  • Energy drinks
  • E-cigarettes

Examples of Excise Goods

  • Cigarettes and cigars (100% tax)
  • Red Bull or Monster drinks (100%)
  • Pepsi and other sodas (50%)
  • E-cigarettes or vapes (100%)

Exemptions and Special Cases

Some goods can be tax-free if:

  • They are exported
  • Stored in free zones
  • Used in research or production

Excise Tax Payment Methods

  • Online through FTA portal
  • Bank transfer

Make sure payment is done by the 15th of the following month to avoid fines.

Steps to File Excise Tax Returns

  1. Collect and organize documents
  2. Calculate the tax correctly
  3. Submit on the FTA site
  4. Make the payment
  5. Save all records

Why Choose Mubarak Al Katbi?

Benefits of Working with Us

  • Skilled guidance
  • Custom solutions
  • Fast response
  • Regular updates
  • Dedicated support

Get in Touch

Need help with your excise tax journey in the UAE? Mubarak Al Katbi is here to offer professional Excise Tax Advisory Services that meet legal needs and protect your business from risks. Let’s make tax compliance easy—contact us today!

FAQ

FAQs on Excise Tax Advisory Services

List of items that are subject to an excise tax?
The items subject to excise tax include: (1) tobacco products, (2) carbonated and energy soft drinks, (3) goods specified for a particular purpose by the authority.
Are samples also subject to an excise tax?
Yes, they are. Tax becomes due once the goods are made available for consumption, regardless of whether they are released in retail markets or free zones. Bad debt relief is not available under this provision.
Who is liable to register for excise tax?
The responsibility for registering for excise tax lies with businesses engaged in: (1) importing the specified goods into the UAE, (2) producing and distributing those excise goods for consumption within the UAE, (3) stockpiling such goods under specific conditions in the UAE, (4) acting as a warehouse keeper responsible for managing the related warehouse or designated zone.
Do all the goods that come under ‘excise goods’ have the same excise tax rate?
No, they do not. Different categories of excise goods are subject to varying excise tax rates, unlike VAT which generally has a uniform rate.
What do you understand by excise tax?
Excise tax, introduced in 2017, is an indirect tax imposed only on excise goods such as carbonated drinks, energy drinks, tobacco, and tobacco products. These items are considered harmful to human health and the environment. Excise tax also applies to sweetened drinks, electronic smoking devices, and the liquids used in them.

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