VAT Services
Anyone who plans to conduct business in the UAE that produces, stockpiles or imports excise items must register with the excise tax authority. Companies must register for the Federal Excise Tax UAE within 30 days of their establishment or the law's implementation date, whichever comes first. Until a company is registered for excise tax in the UAE, it cannot engage in any excise product transactions. Even though a company is not a manufacturer or importer of excise items, it may be needed to Excise Tax Registration in UAE. If you started your firm before the establishment of the UAE federal excise tax, you are a stockpiler of excise items. The third scenario is if you're selling excise items out of a Designated Zone but aren't registered for UAE Excise Tax. Reyson Badger is one of the UAE's major Accounting and Auditing Service providers, providing streamlined Excise tax registration services.
Businesses that import, produce, stockpile, or release excise goods from a UAE designated zone are required to register for excise tax. Reyson badger provides the best excise tax services in Dubai, UAE.
Every business that engages in the following activities is responsible for excise tax:
Excise tax is an indirect tax paid on certain commodities known as "excise goods" that are often damaging to human health and the environment. In 2017, the excise tax was implemented across the UAE.
The goal of levying an excise tax in the United Arab Emirates is to discourage the intake of unhealthy and hazardous goods while also raising cash for the government to spend on useful public services.
A business must register for excise tax under UAE Federal Decree-Law No. 7 of 2017. The deadline for company registration was November 30, 2019. The registration deadline for stocks is January 15, 2020.
As per cabinet decision No.52 of 2019 on Excise Goods, Excise Tax Rates and Methods of Calculating the Excise Price here is the rate of excise tax.
Businesses that engage in the following activities will be subject to Excise Tax Registration.
There could be a registration requirement exemption for people who don't often import excise items. The person or company must prove that they don't import excise items more than once every six months or four times every twenty-four months in order to be eligible for this exemption. Put another way, they might not have to register for excise tax if they import excise items just once every six months or less often.
Even if a person or company is eligible for this exemption, they can still have to pay excise tax on imported products that are more than the duty-free amount. The highest value of items that may be imported without paying taxes or customs fees is known as the duty-free threshold. The person or company is nonetheless liable for the appropriate excise tax even if the excise goods' value is more than the duty-free level.
According to UAE Federal Decree-Law No. 7 of 2017 on Excise Tax, it is the duty of every firm involved in the following to register for excise tax:
While FTA is prepared to offer a great deal of assistance and direction in this regard, it is the business's role to ensure that all necessary compliance requirements are fulfilled.
The registration process under the Excise Tax law by the FTA in the UAE is rather complex and calls for an elaborate set of procedures to ensure compliance for businesses involved with excise goods. Here’s a streamlined process:
1. Login to EmaraTax Portal: Access the FTA’s EmaraTax platform using your login credentials or UAE Pass. If you are new, create an account and complete two-factor authentication if required.
2. Initiate the Registration: Once logged in, select the “Excise” tile under the Taxable Person dashboard and click ‘Register’ to start the application.
3. Complete Application Sections: The application is divided into sections:
4. Excise Goods Information: Identify the excise goods dealt with and the date excisable business commenced. You can apply for relief or register as an additional role
5. Additional and Customs Details: If available, please provide GCC import details and customs registration numbers for improved efficiency in importing and exporting.
6. Authorized signatory: Appoint a person authorized to deal in excise matters, with accompanying authorization documents if necessary.
7. Review and Declaration: Verify all information, declare accuracy, and formally submit the application.
8. Post-Submission: After submission, a Reference Number is generated. The FTA may request further details, and you will receive notifications regarding the application’s status.
This step-by-step ensures businesses remain compliant and fulfill all excise tax obligations accurately.
Excise Tax Penalties
|
Description of violation |
Administrative penalty (in AED) |
|
The company's or taxable person's failure to show tax-inclusive pricing. |
15,000AED |
|
Noncompliance with the regulations and policies controlling the transportation of excise goods in designated zones. |
AED 50,000 or 50% of any unpaid taxes on the products resulting from a violation will be the penalty, whichever is higher. |
|
Failure to provide the authority with price lists for the excise goods that the taxable person manufactures, imports, or sells |
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Reyson Badger will assess your firm to see whether you need to register for tax and will make the necessary decision. We have a team of qualified tax professionals in the UAE who can help you with excise tax and other tax accounting services. They have significant experience in a variety of sectors. Reyson Badger tax experts will assist you throughout the process to ensure that you abide by the law. They will assist you in submitting all of the essential documents for the tax registration process and will relieve you of your concerns.
Aside from excise tax registration services in Dubai and the UAE, Reyson Badger also provides CFO, Auditing, Accounting & Bookkeeping, Accounting Software, Due Diligence, and other professional services.
Feel free to contact us. Our team of tax consultants will give you a one-hour free consultation…!!!