Excise Tax Registration in UAE

Excise Tax 

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.

Products to be registered as excise goods 

• Carbonated drinks include any aerated beverage except for unflavoured aerated water
• Energy drinks include any beverages which are marketed, or sold as an energy drink, and containing stimulant substances that provide mental and physical stimulation.
• Tobacco and tobacco products
• Electronic smoking devices and tools
• Liquids used in such devices and tools
• Sweetened drinks. 

Rate of excise tax 

According to Cabinet Decision No. 52 of 2019 on Excise Goods, the rate of the excise tax is as follows:

• 50 percent on carbonated drinks
• 100 percent on tobacco products
• 100 percent on energy drinks
• 100 percent on electronic smoking devices
• 100 percent on liquids used in such devices and tools
• 50 percent on any product with added sugar or other sweeteners.

New excise list and tax rates 

• 50 percent on Sweetened drinks 
• 100 percent on Electronic smoking devices and tools 
• 100 percent on Liquids used in electronic smoking devices 

Minimum price for Tax Registration 

• A minimum price of Dh0.40 must be applied per individual cigarette; and a minimum price of Dh0.10 must be applied on water pipe tobacco, ready-to-use tobacco or similar product. 

How to register for excise tax? 

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: -

• Create an e-Services account with the FTA: -
• Sign up with your e-mail address and unique password of 6-20 characters
• Verify your e-Services account 
• Log in to the account
• Understand the icons and symbols on the registration form
• Confirm by clicking the button ‘Click here to confirm.’
• Then click on “Proceed” to initiate the Excise Tax Registration Form
• Fill in the required fields by providing accurate answers to the questions on your Excise Tax registration, amendment forms, and the de-registration application
• Once you are convinced that all of the information is correct, click on the ‘Submit for Approval’

For general inquiries about tax registration or application, you can contact the Federal Tax Authority through the inquiry form or email or phone call. 

Deadline for Tax Registration

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.

Who should Register for Excise Tax?

It is the responsibility of all businesses that are engaged in the following areas to register for Excise Tax: -

• Companies engaged in the import of excise goods into the UAE
• Companies engaged in the production of excise goods where they are released for consumption in the UAE
• Companies engaged in the stockpiling of excise goods in the UAE in certain cases
• A warehouse keeper who is responsible for overseeing an excise warehouse or designated zone.

Documents Required for Excise Tax Registration UAE

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: 

• Passport copy of the manager, owner, and senior management
• Emirates ID of the manager, owner, and senior management
• Trade license
• Certificate of Incorporation (if applicable)
• Customs number issued by the Customs department (if applicable)
• Authorized signatory documents
• Articles of Association/Partnership Agreement/Club or Association Registration/Law or Decree (if applicable)
• Bank Account details
• Business details such as: -

• The role in which you are registering for excise tax (producer, importer, etc).
• Details of the excise goods the business is involved in.
• Customs Authority registration (if applicable).
• The TRN if you have registered for excise tax in another GCC State 

CDA for Excise Tax Registration Services

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!