Excise tax registration in UAE is mandatory for anyone who intends to conduct business that produces, stockpiles or imports excise goods in the Emirates. , Businesses must register for the Federal Excise Tax UAE within 30 days after the opening of the business or the effective date of the law, whichever is earlier. Every single business cannot involve in any transaction of excise goods until they are registered for excise tax in the UAE. In some cases, businesses are required to register for excise tax in UAE even though they are not a producer or importer of excise goods. If you are a stockpiler of excise goods who started the business before the introduction of UAE federal excise tax. The other case is if you are issuing excise goods from a Designated Zone but not registered for UAE Excise Tax. CDA is one of the leading accounting and bookkeeping services providers in the UAE, which offers seamless services for Excise tax registration in UAE.
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 in UAE 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.
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.
According to Cabinet Decision No. 52 of 2019 on Excise Goods, the rate of the excise tax is as follows:
Excise tax registration in UAE can be done online through the FTA portal. If you are a business owner who intends to register for excise tax can complete the registration via e-services section on the FTA website. However, first, they need to sign up and create an account. The procedures are as follows: -
For general inquiries about tax registration or application, you can contact the Federal Tax Authority through the inquiry form or email or phone call.
There is no registration threshold for excise tax; therefore, any corporation that intends to be involved in any of the activities listed above must register prior to the date of introduction.
Excise duties on the expanded list have been effective from 1st December 2019 and full compliance on registration is mandatory.
Tax Registration will avoid all stakeholders any fines or obstacles that may come up from late or failed registration.
It is the responsibility of all businesses that are engaged in the following areas to register for Excise Tax: -
Availing the right excise tax advisory services will help you understand the basic procedures and documents necessary for the activity. During the process of excise tax registration in Dubai and across the UAE, you need to arrange various documents that are related to the registration procedure. It will be more convenient if you have the following documents ready for the tax registration process:
CDA will analyze your business nature to understand whether you must register for Tax and will take apt decision accordingly. CDA has a team of expert tax consultants in UAE, with wide experience in diverse fields, who can assist you with your excise tax and various other tax accounting services. CDA tax specialists will help you throughout to finish all the procedures to make you comply with the law. They will help you furnish all the required documents to be submitted for the tax registration process and make you ease from the hazard.
Other the excise tax registration services in Dubai and UAE, CDA Accounting & Bookkeeping Services LLC also professionally handles 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. We give priority to the maximum satisfaction of our clients.
If you are still confused about how to register to excise tax in UAE, feel free to contact us. Our tax consultants will give you one-hour Free Consultation to drive away your worries!
Excise tax is due when (1) the excise goods are available for consumption in the UAE. This does not mean the excise goods are to be sold, (2) the goods are imported into the UAE, (3) received by the stockpiler (owner of the excise goods) and no tax previously paid on these excise goods.
The process of registration for excise tax are (1) create and verify your e-service account at the FTA portal, (2) begin with ‘Register for Excise Tax’, (3) initiate, complete and submit the excise tax registration form.
Yes, you will face an administrative penalty of AED 20,000 for late registration.
If you no longer are liable for excise tax i.e. not involved in this activity, you could go ahead with the option of de-register. Late de-registration invites penalties of AED 10,000.
No threshold is present for registration.
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