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Excise Tax Registration in UAE
Excise Registration UAE
Excise tax registration in UAE is a mandatory process that brings businesses and individuals under the regulatory purview of the Federal Tax Authority (FTA). This registration obliges them to pay excise tax on specific products that are deemed detrimental to public health and the environment. These products include tobacco, sugary drinks, and energy drinks.
Who Must do Excise Registration?
Importers of Excise Goods
Businesses engaged in the importation of excise goods to the UAE.
Producers of Excise Goods for Local Consumption
Entities producing excise goods that are intended for consumption within the UAE.
Stockpilers of Excise Goods
Businesses or individuals stockpiling excise goods.
Custodians of Excise Warehouses or Designated Zones
Individuals or entities responsible for overseeing excise warehouses or specific zones.
Required Documents for Excise Tax Registration In UAE
To facilitate the excise tax registration process in the UAE, it’s essential to gather the following documents:
- Emirates IDs: Emirates IDs of top management, owners, and managers.
- Trade License: A valid trade license.
- Declaration of Incorporation: If applicable, a declaration of incorporation.
- Authorized Signatures: Authoritative signatures on relevant documents.
- Passport Copies: Copies of the manager’s, owners, and senior management’s passports.
- Articles of Association: Documentation related to the articles of association, partnership agreements, club or association registration, laws, or decrees, if applicable.
- Bank Account Information: Information pertaining to the business’s bank account.
- Customs Number: If applicable, the customs number.
Additionally, businesses should provide information about their company, including the purpose for which they are registering for excise tax (producer, importer, etc.), the Tax Registration Number (TRN) if registered for excise tax in another GCC State, details of the excise items the company deals in, and any relevant registration with the Customs Authority, if applicable.
Excise Tax Rates in the UAE
Understanding the excise tax rates is crucial for businesses subject to excise tax in the UAE. As of now, the excise tax rates are as follows:
- Tobacco Products: 100%
- Energy Drinks: 100%
- Carbonated Drinks: 50%
Since December 2019, excise tax has also been imposed on electronic smoking devices or tools and the liquids used in these devices or tools, as well as sweetened drinks.
Impact on Consumers: Excise tax has a direct impact on product prices, albeit smaller than the actual tax amount. This cost burden is shared between producers and consumers. The extent of this impact is determined by the elasticities of demand and supply for the respective products.
How to Register for Excise Tax in the UAE ?
STEP 1
Create an e-Services Account
- Sign up by creating a username and password.
- Verify your email address within 24 hours.
- Log in to your e-Services account.
STEP 2
Register for Excise Tax
- Click on “Register for Excise Tax.”
- Complete all mandatory fields (marked with *).
- Click “Submit for Approval” to submit the form.
Registration Deadline
There is no specific deadline for excise tax registration in the UAE. However, businesses engaging in the listed activities should register before commencing their operations and account for excise tax accordingly.
Why Excise Tax in the UAE?
The UAE government imposes excise taxes with a dual purpose. It aims to generate revenue for funding essential public services while discouraging the consumption of unhealthy and hazardous goods.
Excise Tax Registration Services by IBR GROUP
Navigating the intricacies of excise tax registration in the UAE can be a complex endeavor. That’s where IBR GROUP comes into play. We offer comprehensive excise tax registration services, along with VAT registration services, auditing, business consultancy, accounting and bookkeeping, VAT services, and tax compliance services. Our expertise covers all facets of excise tax services in the UAE.
In conclusion, excise tax registration in the UAE is a vital legal requirement that businesses must adhere to. Ensuring compliance not only avoids penalties but also contributes to the overall well-being of the community by discouraging the consumption of harmful products. Therefore, for expert guidance and seamless registration services, turn to IBR GROUP – your trusted partner in excise tax compliance.