Excise Tax

xecutivfbs.com - Service - Business - Excise Tax

Outsource Financial Expertise with Xecutiv FBS

Empowering Your Tax Strategy: Navigating the Landscape of Excise Tax with Xecutiv FBS Consultancy

Excise tax was implemented in the UAE in October 2017. It was introduced as part of the government’s efforts to promote healthier consumer choices and generate additional revenue by taxing specific goods and products that are considered harmful to health or the environment. Excise tax is an important aspect of the UAE’ fiscal policy, and it plays a vital role in the country’s economy.

At Xecutiv FBS, we enact the role of your excise tax consultant, and we work closely to cut down your load of tax complexity. We all the way look after your Excise Tax related matters.

The UAE levies excise tax on three main categories of products:

  • Tobacco Products: This includes cigarettes, shisha, and other tobacco-related items.
  • Carbonated Drinks: Sugary and carbonated beverages fall under this category.
  • Energy Drinks: High-caffeine energy drinks are also subject to excise tax.

The applicable tax rates are as follows:

  • 100% on tobacco and tobacco products, electronic smoking devices and tools, liquids used in electronic smoking devices and tools, and energy drinks.
  • 50% on carbonated drinks and sweetened drinks.

Businesses involved in the production, import, or sale of excise goods must comply with the UAE's excise tax regulations. Failure to do so can result in penalties and legal consequences.

Consumers purchasing excise goods will notice an increase in the prices of these products due to the imposition of excise tax. This is an intentional move by the government to discourage consumption and promote healthier choices.

The excise tax registration process in the UAE involves several steps. Here's a general overview:

 

  • Determine Eligibility: First, determine if your business is eligible to register for excise tax. Typically, businesses involved in the production, import, or sale of excisable goods such as tobacco, energy drinks, and sugary drinks need to register.
  • Create an e-Services Account: You'll need to create an e-Services account on the EmaraTax portal.
  • Login and Start Registration
  • Submit Required Documents
  • Bank Account Verification
  • Once your registration is approved, you'll receive a Tax Registration Number (TRN). This number is essential for all tax-related activities.
  • File Excise Tax Returns: After registration, you'll be required to file regular excise tax returns, reporting your tax liability.
  • Compliance and Record Keeping: Ensure compliance with excise tax laws, maintain proper records, and be ready for audits by tax authorities.

 

Please note that the exact requirements and procedures may change over time, so it's essential to check the Federal Tax Authority's official website and consult with tax professionals from Xecutiv FBS for the most up-to-date information and guidance on excise tax registration in the UAE.

Businesses are required to file and pay excise tax to the Federal Tax Authority (FTA) in the UAE. The FTA provides online platform EmaraTax and resources to facilitate this process. Xecutiv FBS can provide their professional support to your company in the preparation of excise tax returns and filing it with FTA and making payments on time.

Certain circumstances may allow for exemptions or refunds under the excise tax law. It's important for businesses and consumers to understand these provisions to avoid unnecessary tax payments. Consult with Xecutiv FBS to get more details and clarifications on this.

Excise tax in the UAE serves as a powerful tool to achieve public health goals, regulate consumption patterns, and bolster government revenue. Understanding the intricacies of excise tax is crucial for both businesses and consumers to navigate this tax regime successfully. For more information and detailed guidelines, consult the official website of the Federal Tax Authority (FTA) or seek guidance from tax professionals from Xecutiv FBS.

BENEFITS OF OUTSOURCING YOUR EXCISE TAX RELATED TASKS TO XECUTIV FBS

Experience the peace of mind that comes with entrusting your financial tasks to Xecutiv FBS.

  • Confidential & Secured Information
  • Expertise Support
  • Cost Effective Solutions
  • No Hiring and Visa Cost
  • Surety On Compliance with Laws & Standards
  • Gain A Competitive Edge
  • Internal Staff Knowledge Development
  • Wide Range of Services