Excise Tax Registration in the UAE
Excise tax was introduced across the UAE in 2017. Excise tax is a form of indirect tax levied on specific goods which are typically harmful to human health or the environment. These goods are referred to as “excise goods”. When considering whether a product is an excise good, the following definitions apply:
- Carbonated drinks include any aerated beverage except for unflavoured aerated water. Also considered to be carbonated drinks are any concentrations, powder, gel, or extracts intended to be made into an aerated beverage.
- Energy drinks include any beverages which are marketed, or sold as an energy drink, and containing stimulant substances that provide mental and physical stimulation, which includes without limitation: caffeine, taurine, ginseng and guarana. This also includes any substance that has an identical or similar effect as the aforementioned substances. Also considered to be energy drinks are any concentrations, powder, gel or extracts intended to be made into an energy enhancing drink.
- Tobacco and tobacco products include all items listed within Schedule 24 of the GCC Common Customs Tariff.
A person who conducts (or intends to conduct) activities like producing, importing, transfering or stockpiling of excise goods should pay excise tax.
They must register within 30 days after either the onset of business, or the effective date of the law, whichever is earlier. They cannot be a part of any transaction involving excise goods until they have registered for excise tax in the UAE. There is no registration threshold for excise tax.
Exceptions to excise tax registration
A person who does not import excise goods regularly will not have to register for excise tax. They will need to prove that they do not import excise goods more than once in six months or four times in twenty-four months.
Excise tax will still be due on imports where the value of the excise goods exceeds the duty-free threshold.
Excise tax de-registration
If a person who has registered for excise tax is no longer dealing with excise goods, they can apply for de-registration.
Documents required for excise tax registration
You will need to provide several documents during registration to authenticate your information. The supporting documents required are:
- Passport copy
- Emirates ID
- Trade license
- Any other official records that entitle the business to administer activities within the UAE.
Business details required for registration
- The role in which you are registering for excise tax (producer, importer, etc).
- Details of the excise goods with which the business is involved.
- Details of your Customs Authority registration, if applicable.
- If you are registered for excise tax in another GCC State, provide the TRN for that GCC state.
Looking for Excise Tax Registration and Services in the UAE ?
Alya Auditors are the TAX Experts providing VAT Consultancy, VAT Advisory and VAT Implementation Services in the UAE. We do support and guide the business community to register for Excise Tax in the UAE as well as advisory service on the compliance of UAE Excise Law. For more information on Excise Tax Registration in the UAE and related services, kindly contact our below representative.
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