tax.gov.ae How to Register for Excise : Federal Authority

Organization : Federal Tax Authority
Facility : How to Register for Excise Tax
Applicable For : Tax Payers
Country: United Arab Emirates
Details : https://www.tax.gov.ae/en
Login Here : https://eservices.tax.gov.ae/
Home Page : https://www.dha.gov.ae/en

Federal Authority Register for Excise Tax

Excise tax is the responsibility of any person engaged in
** the import of excise goods into the UAE

Related : NOC RTA How to Apply e-NOC : www.statusin.org/40933.html

** the production of excise goods where they are released for consumption in the UAE
** the stockpiling of excise goods in the UAE in certain cases
** anyone who is responsible for overseeing an excise warehouse or designated zone i.e. a warehouse keeper

There is no registration threshold for excise tax, therefore any person who has the intention to be involved in any of the activities listed above must register prior to the date of introduction and account for excise tax.

Getting Ready for Excise Tax

It is important to understand any potential obligations you or your business may have under the UAE Excise Tax Law.

The FTA is committed to providing extensive support and guidance to assist with this, however the responsibility lies with the business to make sure that any required compliance obligations are fulfilled.

The FTA does have the power to conduct audits on taxable persons and subsequently impose penal measures on those that are not compliant with the law.
Excise Tax will be introduced across the UAE in the fourth quarter of 2017.

The rates to be applied in the UAE will be :
** 50% for carbonated drinks
** 100% for tobacco products
** 100% for energy drinks

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.

Questions About Excise Tax

When will affected businesses be able to register to file excise tax returns and pay excise tax?
Businesses required to register for excise tax will need to apply to the FTA via an online system. Registrations for excise tax will open mid-September 2017.

Which goods will be subject to excise tax in the UAE?
The following goods will be subject to excise tax in the UAE at the following rates of tax
** Carbonated drinks – 50%
** Energy drinks – 100%
** Tobacco – 100%

What value will excise tax apply to?
Excise tax will be applied to the retail selling price of the goods, at the rate applicable to the excise good in question e.g. excise tax will apply at a rate of 100% to the retail selling price of tobacco products.
Details on identification of retail selling price will be issued in due course.

Who will be required to register for excise tax purposes?
The following groups will be required to register for excise tax :
** Producers of excise goods.
** Importers of excise goods.
** Stockpilers of excise goods.
** Warehouse keepers responsible for excise goods.

Businesses that are required to pay excise tax will need to do the following :
** Register with the FTA;
** Submit excise tax returns on a monthly basis; and
** Pay the excise tax due on the same date as submitting a tax return.

When is excise tax due?
Excise tax is a tax on certain goods that are intended for consumption in the UAE. Tax is due when goods are ‘released for consumption’ i.e. when they enter free circulation in the UAE.

Excise tax is due when :
** Excise goods are imported into the UAE;
** Excise goods are released for consumption in the UAE (e.g. manufactured and released from a designated zone/excise warehouse etc); or
** Excise goods are acquired by a stockpiler, where tax has not previously been paid on those goods.

Excise tax is not a transaction-based tax, which means that goods do not need to be sold in order for the tax to be due.