Tax Advisory Services in Dubai ,United Arab Emirates
Excise Tax Advisory
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What is Excise Tax in UAE ?
Simply ,Excise Tax is a form of indirect tax levied on specific goods. These goods are typically those that are harmful to human health or the environment.
In UAE, Excise Tax is currently applied on the following goods:
- Tobacco and tobacco products
- Liquids used in electronic smoking devices and tools
- Electronic smoking devices and tools
- Carbonated drinks (note that this excludes sparkling water)
- Energy drinks
- Sweetened drinks.
Rates
- 50 per cent on carbonated drinks
- 100 per cent on tobacco products
- 100 per cent on energy drinks
- 100 per cent on electronic smoking devices
- 100 per cent on liquids used in such devices and tools
- 50 per cent on any product with added sugar or other sweeteners.
Requirments
A business in the UAE must register for this tax if it meets at least one of the following conditions:
Firstly, if a business imports goods into the UAE, it must register, as imported goods fall under taxable activities.
Secondly, if a business produces excise goods, registration is mandatory because production triggers a tax obligation.
Additionally, if a business stockpiles excise goods within the UAE, it must comply with registration requirements, since holding such goods creates a tax liability.
Finally, if excise goods are released from a designated zone, the business is obligated to register in order to ensure proper tax reporting.
Therefore, any business engaged in these activities should carefully assess its operations to remain fully compliant with UAE tax regulations.
How to Register
Visit the e-services in the FTA website and can register your business or Consultants Like RVG can help you with all the services related to Excise Tax
