How To Register For Excise Tax In UAE?
Excise tax is an internal tax that is applied on several products that are harmful to health and the environment, such as alcohol, fuel, tobacco, and carbonated products. Excise tax is not paid by the customers directly, It’s paid by the manufacturer and wholesaler and they add the price to the product. So it’s clear, the Excise tax is an indirect tax. For maintaining a healthy standard environment in the country, UAE rolled out the excise tax system in the entire UAE. From Dec. 2019, the UAE government levied the excise tax on all kinds of e-cigarettes, e-liquids used in e-cigarettes, e-cigarettes devices, and sweetened drinks.
How to Consider that Excise Tax is Applied On Our Products?
- Tobacco products - If you Business deal in any kind tobacco products.
- Tobacco - Business deal and produce the tobacco.
- Energy Drinks - Sweetened drinks that are sold in the market. The excise tax applies to all kinds of drinks that contain stimulant substances that provoke mentally and physically. Also apply on these drinks which have caffeine, taurine, ginseng, and guarana. And any other product that makes carbonated drinks like powder, gel, etc.
- Carbonated Drinks - Drinks that contain aerated except the unflavoured water. And any other product that makes carbonated drinks like powder, gel, etc.
- Tobacco Device and Tool - From Which People can consume e-cigarettes and other smoking products.
- Import Business - If anyone imports any kind of products that are harmful to human health and environments like tobacco, carbonated products, e-cigarettes, e-cigarettes devices, and tools, etc.
How to Register For Excise Tax in Dubai?
Excise Tax Registration is Mandatory for business under the UAE federal decree law No. 7 of 2017 on Excise Tax. If any corporates have been involved and to be involved in above mention products listed must be registered and have an excise tax account.
Business can be registered for excise online by follow the following steps:-
Step:1 - You have to visit the official site of the Federal tax authority. Here is a link.
After clicking on a link, you will see this screen.
Step:2 - Before registration of excise tax, You have to login into the federal tax authority e-service account. If you are not registered here is a link for registration.
The FTA e-service registration page appears like the above image.
Step:3 - After login into your e-service account, you will see the button which is inviting you for excise tax registration.
After Clicked you will see the short guide. The short guide makes you understand the important requirements for the registration. After completing the short guide Click on the confirm to do the next step.
Step:4 - After the confirmed guide, you have to fill the registration form. And you will get there two buttons.
- Save as Draft - You can Draft your form.
- Save and review - You can check that the form has been filled properly.
Note: Maybe you will be logged out after 10 minutes automatically if you don’t do any activity.
Step:5 - You just have to hit on the submit for approval button. Great, your excise registration form has been submitted successfully for review.
Step:6 - In this step, you will check the registration status. Click on the Dashboard button and look at the status.
- Drafted - It means your form either has not been submitted or completed.
- Rejected - Your registration has been rejected.
- Pending - It means your registration still is under review.
- Approved - Congratulations, you have successfully registered for excise tax.
Step: 7 - If your registration is failed due to late registration. Then you have to pay the late plenty charge, The late plenty charge is 20,000 AED. To check the plenty charge and make a payment follow these following steps:
- Visit your dashboard, there you will see the “late registration penalty”. Under the Excise tax box, you can see the late payment charge. Click on the “Pay Now” button to make the payment.
- After clicking on the pay now button you will redirect to the E-dirham payment gateway page. There you make the payment of the late registration.
- You can make the payment by the e-Dirham or credit card.
- Once payment is done. You can check the translation history under my payment tab.
Required Documents for Excise Tax Registration.
- Trade License.
- Authorized signatory documents.
- Details of the bank account.
- Role of your business (importer, producer, and supplier).
- Details of products in which you deal.
- Copy of passport.
- Emirates ID.
- Incorporation Certificate (if Applicable).
- Details of firm type, sole proprietorship, or partnership.
- TRN registration number for excise tax in another GCC State.
- Registration of custom authority. (If Applicable).
Risians Accounting Excise Tax Service and Advisory In Dubai.
Risians accounting is a reputed and trusted firm in dubai which offers accounting service in dubai. Risians Accounting is a team of certified accountants who has decades of working experience in different business industries and projects. Risians accounting also has a specialized team for a tax consultant in Dubai, who can properly assist you with your excise tax and other various tax consultant services. Along with tax consultant service, risians accounting also offers accounting and bookkeeping, auditing and assurance, Business consultancy, organization consultancy, ESR services, and other accounting related services.
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Why has the UAE Government Introduced the Excise Tax in Dubai?
To make a more healthy environment in the UAE. The UAE government introduced the excise tax on all kinds of harmful products for human health and the environment. The UAE Government wants that In UAE people don’t consume harmful commodities and also increase the government income that aid the UAE government to accomplish their vision. In the UAE consumers have to pay more money on the consumption of harmful commodities like tobacco, e-cigarettes, energy drinks, sweetened drinks, etc.
Rate Of Excise Tax in UAE.
- On carbonated drinks 50% rate.
- On tobaccos product 100% rate.
- On energy drinks100% rate.
- On electronic smoking devices 100% Rate.
- On liquids used in such devices and tools 100% rate.
- On any product with added sugar or other sweeteners 50% rate.
If you still have any confusion related to the excise tax and other tax or accounting, feel free to contact the risians accounting firm in dubai.