Excise Tax Registration & Services in UAE

Name: Excise Tax Registration & Services in UAE
Brand: BMS Auditing
Rating: 4.8 (1208 reviews)

Excise tax registration in UAE is required for any business that imports, produces or stockpiles excise goods, or releases them from a designated zone. An excise tax registration service in UAE needs to be done as per the law of the UAE. BMS Auditing is offering the best and most timely excise tax registration services 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.

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.

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.

Documents required for Excise Tax Registration in UAE

You may better comprehend the fundamental processes and documentation required for the activity by using the appropriate excise tax auditing services. You must gather a number of documents linked to the registration process in order to register for excise tax in the UAE.

If you are prepared with the following paperwork for the tax registration procedure, it will be more convenient for you:

1. 1. Emirates IDs of the top management, owner, and manager
  2. trade license
  3. Declaration of Incorporation (if applicable)
  4. authoritative signatures on papers
  5. Copy of the manager's, owner's, and senior management's passport
  6. Articles of Association, a Partnership Agreement/Club or Association Registration/Law or Decree (if applicable)
  7. Bank account information
  8. The Customs number (if applicable)

Your business information such as

Information about your company, including: - The purpose for which you are registering for excise tax (producer, importer, etc.).

1. 1. The TRN if you have registered for excise tax in another GCC State
  2. Information on the excise items that the company deals in.
  3. 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	100%
Energy Drinks	100%
Carbonated Drinks	50%

Since December 2019, the excise tax was also imposed on the following:

- - Electronic smoking devices or tools
  - Liquids used in these devices or tools
  - Sweetened drinks

How Does Excise Tax Affect Consumers?

The imposition of an excise tax raises the price of the product, but by a smaller amount than the whole amount of the tax, and the price burden is shared by both producers and consumers. The precise impact is determined by the product's elasticities of demand and supply.

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

1. 1. Sign up by creating a username/password
  2. Verify your email address within 24 hours
  3. Log in to your e-Services account

Registering for Excise Tax

1. 1. Click Register for Excise Tax
  2. Complete all mandatory fields (marked with *)
  3. 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.

Why is Excise Tax imposed in UAE?

The UAE government levies excise taxes to raise money for the government that may be used to fund useful public services while also reducing the consumption of unhealthy and hazardous goods.