Excise Tax Advisory Services In Dubai, Abu Dhabi, Sharjah, RAK, UAE
VATBOX is a leading Tax Agency (TAN 30001614) in Dubai, Abu Dhabi, Sharjah, Ajman, and RAK United Arab Emirates that has experts with insight and experience in excise Tax laws. The service we provide includes planning and advice, registration of excise tax, filing monthly excise tax returns, excise tax compliance, assessment of tax calculations, and all tax advisory services.
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Excise Tax Advisory
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
VATBOX Tax Agency 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 installments. 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 VAT BOX UAE for excise tax services in Dubai, Abu Dhabi, Sharjah, Ajman, and RAK United Arab Emirates.