Excise duty registration requirments

  • Excise duty was introduced in UAE since October 01, 2019. As per UAE Excise Law, following are required to registered for excise purposes:
    • Importer of excise goods into the UAE
    • Producer of excise goods where they are released for consumption in the UAE
    • Stockpiler of excise goods in the UAE in certain cases
    • Warehouse keeper, person who is responsible for overseeing an excise warehouse or designated zone.
  • When to register:
    • Any person who has been involved or has the intention to be involved in the excisable goods must register and account for excise tax.
    • Such person must notify the FTA within 30 days of the end of the month in which they were involved or formed the intention to be involved in excisable goods.
    • The person will then be registered with effect from the first day of the month in which they were involved, or the intention was formed.
  • Excisable goods: Excisable goods includes the followings:
    • Carbonated drinks: 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. Carbonated drinks do not include drinks which contain alcohol, even if that product would otherwise be an aerated beverage
    • Tobacco products: Tobacco and tobacco products include all items listed within Schedule 24 of the GCC Common Customs Tariff. Those products include:
      • Chewing tobacco
      • Cigars
      • Cigarettes
      • Cigarette rag
      • Cigarillo
      • Expanded tobacco
      • Hand rolling tobacco
      • Herbal smoking products
      • Oral snuff
      • Reconstituted tobacco sheets
      • Snuff
    • Energy drinks: The definition of energy drinks for excise tax purposes shall be any beverages which are marketed, or sold as an energy drink, containing stimulant substances that provide mental and physical stimulation. Such ingredients can include caffeine, taurine, ginseng and guarana, but could also include others. Energy drinks also include not only the beverage itself, but also any concentrates, powder, gel or extracts intended to be made in to an energy drink
  • Excise rates: Excise rates are as under:
    • 50% for carbonated drinks
    • 100% for tobacco products
    • 100% for energy drinks
  • Threshold: For excise registration purposes, any threshold is not applicable for excisable goods.
  • Excise tax return: Registered excisable persons are required to submit the Excise Tax Returns on a monthly basis. The due date to file your Excise Tax Returns is the 15th day of each month.
  • Value for Excise Duty purposes.
    • 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.
  • What Businesses are required to do?
    1. Register with the Authority;
    2. Submit excise tax returns on a monthly basis; and
    3. Pay the excise tax due on the same date as submitting a tax return.
  • When Excise Duty is 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.
  • Our Excise related services?
    • Registration/deregistration, if required we will register your company.
    • Impact Assessment, we will thoroughly check your business and we will identify the impact of excise on your business.
    • Implementation, we will adjust your accounting and reporting systems so they are ready to account for Excise Tax.
    • Training, Training for the executive and hands on training to the person who would be liable for Excise Tax the future
    • Compliance, return submission on the format required by authorities on monthly basis.