The introduction of excise tax in the UAE in 2017, every single person conducting the business of specific products which are considered to be harmful to human health and environment need to pay a tax to the Government. The excise law is applied to products described in the excise goods category, including tobacco, energy drinks, carbonated drinks, etc. CDA is one of the leading accounting and bookkeeping firm, which offers excise tax advisory services in the UAE to help business with tax auditing and payment. By availing proper tax consulting services, you can ensure if the reported excise tax liability is accurate and submitted to the authority within the date mentioned by the tax authority.
Excise tax is a form of indirect tax levied on specific goods called “excise goods” which are typically harmful to human health or the environment. The Excise tax was introduced across the UAE in 2017.
The purpose of levying excise tax is to reduce the consumption of unhealthy and harmful commodities as well as to raise revenues for the government that can be spent on beneficial public services. Ultimately, consumers need to pay more for goods that are harmful to human health or the environment.
Under the UAE Federal Decree-Law No. 7 of 2017 on Excise Tax, it is the responsibility of a business to register for excise tax. The deadline for registration for companies was November 30, 2019. The deadline for registration of stocks is January 15, 2020.
It is advisable that a Taxable person engaged in activities relating to excise goods such as tobacco products, carbonated drinks, and energy drinks should empower an audit firm to get professional advice on Excise Tax issues.
CDA is one of the leading accounting, tax, and bookkeeping services providers, who provide excellent excise tax advisory services in UAE to its clients and ensures that the clients comply with the tax law.
The companies that are engaged in the following areas are to Register for Excise Tax: -
During the proceedings of Tax Audit, a taxable person has the following rights -
As per the Cabinet Decision No. 52 of 2019 on Excise Goods, the rate of the excise tax is given as below:
A tax registered person is required to maintain the following documents as per the Excise Law in the UAE for a one-year period prior to Excise Tax implementation
CDA offers various sort of excise tax advisory services in Dubai including tax planning, verification of documents, assessment of tax calculation, etc. Given below are the excise tax advisory services offered by CDA:
CDA professionals help our clients to manage excise taxes and make them understand opportunities to mitigate their impact.
CDA experts verify all the documents relating to excise goods and evaluate whether the documents maintained to follow the requirements of the UAE tax laws.
CDA professionals will check the tax calculated by the taxable person and ensures that the tax calculated is accurate
CDA professionals will perform a stock count on a specific date in order to verify the accuracy of the physical inventory maintained by the taxable person.
CDA experts will train the staff members of the company on tax audit to prepare them to face if any tax audit in the future.
CDA professionals give unlimited support to our clients to lead them through the whole procedure of tax registration services without any difficulty.
CDA experts will analyse all the documents related to tax and ensure if they are Tax compliant or not, and will initiate further action.
CDA professionals review Excise Tax records, returns & reconciliation and ensure timely submission of Excise Tax returns for Excise Tax Audit conducted by the FTA. CDA experts can help you maintain your tax records as per the tax law and comply with to avoid penalties and save your money and energy. Our tax specialists support and guide businesses with excise tax registration and systematic excise tax advisory services in the UAE on the compliance of tax law. We can lead you throughout the tax procedures and help your business to grow by providing better strategies.
CDA Accounting & Bookkeeping Services LLC also professionally handle CFO Services, Auditing Services, Accounting & Bookkeeping Services, Accounting Software services, Due Diligence Services, and VAT Consultancy services in Dubai on time according to the convenience of our good clients.
To avail excise tax advisory services in UAE or other related services, get in touch with us.
Excise tax introduced in 2017, is an indirect tax imposed only on ‘excise goods’ which includes, carbonated drinks, energy drinks as well as a tobacco and its products. These goods are harmful to humans and also the environment. Excise tax is also imposed on sweetened drinks, electronic smoking devices and tools and the liquids in it.
No. Unlike VAT, different categories are subject to different excise rate.
Businesses that are engaged in (1) importing of specified goods into UAE, (2) producing and distribution for the consumption of these excise goods in UAE, (3) stockpiling in UAE on certain occasions, (4) warehouse keeper responsible for supervising the concerned warehouse or zone.
Yes, they are. Tax will be due once the goods are available for consumption; regardless of whether the goods are released in retails or free zones. Bad debt relief is also not provided.
The items that are subjected to an excise tax are (1) tobacco products, (2) energy and carbonated soft drinks, (3) specific purpose goods.
Businesses will have to adjust their prices accordingly as per the decisions taken by the management.
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