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 ministrial decisions combinely 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, stockpilers, 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, VATBOX have experts who would help you in gaining your excise tax certificate to initiate your business regarding excise goods.