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It will not be always possible for the companies to look after the issues on tax matters and resolve it with the concerned authority (FTA) by itself. It is necessary for companies to appoint an expert to handle tax matters. Tax Agent can represent the taxable person in front of the Federal Tax Authority and hence if any assessment notice or notice for tax audit comes in future for the assessed, the experienced Tax Agent’s service will be crucial.

Business Heads is a registered Tax Consultant. A multidisciplinary team of specialists who are well-versed in different types of Tax demands is a must. If you are looking for comprehensive Tax management and advisory services, Business Heads is the ultimate destination. We are an experienced friendly professional providing cost effective and quality services to our valuable customers.

Excise TAX Advisory Service:

Excise Tax is an indirect tax levied by the UAE government on goods that are considered harmful to human health or the environment. The basic reason for implementing Excise Tax is to reduce the consumption of these goods, raising income for the government that can be spent for the public.

The Company importing, stockpiling, producing, or releasing excise goods for consumption within the UAE must register for excise tax at the time of importation, stockpiling, production, or release, so as to become a taxable person and account for the excise tax due under the FTA. Like other indirect taxes such as VAT, the excise tax does not need to be paid at every point of the transaction - once the excise tax for the goods has been paid, the excise tax is satisfied for those goods

Which goods are subject to Excise Tax and rate as below

100% Tobacco and tobacco products
100% Electronic smoking devices and tools
100% Liquids used in electronic smoking devices and tools
100% Energy drinks
50% Carbonated drinks
50% Sweetened drinks

When a business must register for Excise Tax?

There is no registration threshold for Excise Tax, therefore if you have been involved or have the intention to be involved in any of the activities listed in the above question must register and account for Excise Tax. You must notify the FTA within 30 days of the end of the month in which you were involved or formed the intention to be involved, that you have a liability to be registered for Excise Tax. You will then be registered with effect from the first day of the month in which you were involved, or the intention was formed and an Excise Tax TRN (Tax Registration Number) shall be issued to you by the FTA

The Terms & conditions for excise tax registration are listed below:

There is no registration threshold for excise tax, therefore if you have been involved or have the intention to be involved in any of the activities listed below must register and account for excise tax.

the import of excise goods into the UAE
the production of excise goods in the UAE
the release of excise goods from a designated zone in the UAE
the stockpiling of excise goods in the UAE in certain cases, where excise tax has not previously been paid on the goods in the UAE and stockpiling is undertaken for business purposes.

For exception from excise tax registration:

The FTA may accept you from excise tax registration in the case where you import or release excise goods from a designated zone into the UAE and the FTA is satisfied that you do not regularly import excise goods; that is

once in a six-month period
or when you import less than 4 times in a 24-month period

Business Heads Tax Consultant here for a step-by-step guideline of UAE Excise Tax concerned

Classification of Goods – Identify the Excise Goods
Identify the primary conditions for registration as an Excise Tax Taxable Person and if applicable, as a Tax Warehouse and Tax Warehouse Keeper
Identify the tax trigger points and the tax liability for flow/transaction after going through the supply chain flows/transactions about the Excise Goods

If there is any additional excise tax during the transitional period, this must be calculated.

Evaluate the pricing impact across the supply chain
Valuation for Excise tax
ERP and process readiness

Excise taxes are fundamentally a business charge, separate from different expenses a business should pay, similar to paying taxes. Business gatherers of excise taxes should likewise keep up with their commitments to giving excise taxes to state and nearby legislatures as required. Traders might be permitted allowances or credits on their yearly personal tax forms connected with excise tax instalments. Excise taxes are imposed on numerous products and services. Like all the other taxes, excise taxes must also be filed on time and with the proper documents. This helps prevent any penalties and legal actions. Therefore, it is best if you hire a professional team like Business Heads UAE for excise tax services in Dubai, Abu Dhabi, Sharjah, Ajman, and RAK United Arab Emirates.

Excise Tax Registration

Business Heads providing Excise Tax Registration Services in Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah and all over UAE.

Federal Decree-Law No. 7 of 2017 on Excise Tax and Cabinet Decision No. 37 & 38 of 2017 with Cabinet Decision No. 52 & 55 of 2019 including resolutions and minitrial decisions combinedly regulating the Excise Tax in UAE. The UAE Government is levying excise tax to reduce consumption of unhealthy and harmful commodities while raising revenue for the government that can be spent on beneficial public services. Consumers need to pay more for goods that are harmful to human health or the environment

Excise tax is ultimately borne by the final consumers but is collected at an earlier stage in the chain. The main features of excise tax are:

It is mainly levied on consumption goods
It is applied to special goods
It is levied either during the production stage or the import stage
It is collected by business on the behalf of the tax authority

Since excise duty relates to the special goods, businesses dealing with these goods should undergo the excise tax registration process that includes producers, importers, stockpiles, and warehouse keepers of excise goods. Registration for excise tax is a mandated process to continue any business dealing with excise goods.

The FTA provides the flexibility of registration for the excise duty using an online portal. We, Business Heads have experts who would help you in gaining your excise tax certificate to initiate your business regarding excise goods

Excise Tax Return Filing

An Excise Tax Return is a record of the excise paid during each tax period. Businesses should file returns for excise tax online using the FTA portal. Excise tax returns should be submitted within 15 days after the relevant tax period. Excise tax should be paid 15 days after the end of the calendar month. If the filing deadline falls on a weekend or a national holiday, it will be shifted to the first working day that follows the holiday or the weekend.

It is always advised to file excise tax returns on time, even if the excise tax has already been paid. Filing excise returns late, or not filing them at all, will attract penalties from the FTA. In some instances, it happens that the FTA refunds the excise tax which has previously been paid on excise goods. Therefore, the taxable person can deduct the value of the tax from the total excise tax payable to the FTA on his excise tax return in the next month.

We, Business Heads can provide you a better Return Filing Service by keep on working on your excise tax return related amendments, updating and communications with FTA to ensure a complete client satisfaction.

Other Services:

Excise Tax Product Registration

Excise Tax Compliance Services