Excise Compliance Services

Excise tax in the UAE, implemented in 2017, is a form of indirect tax imposed on specific goods that are typically harmful to human health or the environment. These goods include tobacco products, carbonated drinks, energy drinks, and electronic cigarettes. Compliance with Excise Tax regulations is mandatory for businesses dealing with these products to avoid hefty penalties and legal repercussions.

The implementation of Excise Tax is governed by Federal Decree-Law No. 8 of 2017 on Excise Tax. This decree outlines the tax rates, taxable goods, registration requirements, and compliance obligations for businesses.

At Shuraa Tax, we are a team of experienced accountants, auditors, and tax advisors dedicated to providing comprehensive taxation services to businesses in Dubai. Our expertise in excise tax compliance ensures that our clients maintain full adherence to the UAE’s tax laws, mitigating risks and penalties.

Who Should Register for Excise Tax?

Any business involved in the production, import, storage, or supply of excise goods in the UAE must register for Excise Tax. This generally includes:

• Manufacturers of excisable goods
• Importers bringing excisable goods into the UAE
• Stockpilers holding a stock of excisable goods for business purposes
• Warehouse keepers storing excisable goods

Products to be Registered as Excise Goods in the UAE

To ensure effective Excise Tax compliance, it's essential to accurately identify products that fall under the taxable category. The following goods are subject to Excise Tax in the UAE:

• Tobacco products (cigarettes, cigars, rolling tobacco, and other tobacco-based products)
• Carbonated drinks
• Energy drinks (caffeine, taurine, or guarana)
• Sweetened drinks
• Electronic smoking devices and tools
• Liquids used in electronic smoking devices and tools

It's crucial to note that the UAE Federal Tax Authority (FTA) may expand the list of taxable goods in the future. Businesses should stay updated on the latest regulations to ensure compliance.

The excise tax rate varies depending on the product category, generally it is 100% on tobacco and tobacco products and 50% on carbonated drinks and sweetened drinks.

Products Exempted from Excise Tax in the UAE

While the primary focus of Excise Tax is on specific goods harmful to human health, certain products are exempt from this tax. This may include:

• Unflavored aerated water (water infused with carbon dioxide but without added sweeteners or flavors)
• Drugs and medicines
• Foodstuffs
• Infant formula and baby food
• Dietary products for specific medical conditions

Excise Compliance Services in the UAE

Shuraa Tax offers a range of Excise Compliance Services in Dubai to help businesses meet their tax obligations efficiently and accurately. Our services include:

1. Excise Tax Registration

Assisting businesses in registering for Excise Tax with the Federal Tax Authority (FTA) and ensuring all necessary documentation is in place.

2. Excise Tax Return Filing

Preparing and submitting accurate and timely Excise Tax returns to the FTA, minimizing the risk of penalties and interest charges.

3. Excise Tax Audits

Conducting thorough Excise Tax audits to identify potential areas of improvement and ensure compliance with FTA regulations.

4. Excise Tax Advisory

Providing expert advice on Excise Tax matters, including product classification, tax calculations, and dispute resolution.

5. Excise Tax System Implementation

Helping businesses implement robust Excise Tax systems and processes to streamline operations and enhance efficiency.

Businesses involved in the production, import, storage, distribution, or sale of excise goods, including manufacturers, importers, wholesalers, and retailers, can benefit from our Excise Compliance Services in Dubai.

Why Do You Need Excise Compliance Services?

Excise tax compliance can be complex and time-consuming. Non-compliance can result in significant penalties and fines. By partnering with Shuraa Tax, you can:

1. Minimize Tax Liabilities

Ensure accurate calculations and timely payments to avoid penalties.

2. Prevent Audits and Disputes

Proactive compliance reduces the risk of audits and disputes with the FTA.

3. Focus on Your Business

Delegate excise tax compliance to our experts, allowing you to focus on core business activities.

4. Stay Updated

Benefit from our knowledge of the latest excise tax regulations and changes.

Our Excise Compliance Procedure

Our Excise Compliance Services follow a systematic approach:

1. Initial Assessment

We evaluate your business operations and identify your specific Excise Tax requirements.

2. Registration and Setup

We assist with Excise Tax registration and system setup.

3. Data Collection and Analysis

We gather relevant financial data and analyze it to determine your tax liability.

4. Return Preparation

We prepare accurate and timely Excise Tax returns.

5. Filing and Payment

We submit the returns to the FTA and ensure timely payment of taxes.

6. Ongoing Support

We provide ongoing support and advice to address any Excise Tax-related queries or issues.

Why Choose Shuraa Tax?

Expertise

Our team of qualified professionals has in-depth knowledge of excise tax laws and regulations.

Compliance Assurance

We ensure strict adherence to FTA regulations.

Client Focus

We are committed to understanding your business needs and providing tailored solutions.

Cost-Effective

We offer competitive pricing and value-added services.

Trusted Partner

With a strong reputation in the industry, Shuraa Tax is a trusted partner for businesses in Dubai.

Frequently Asked Questions

1. Do all the goods that come under 'excise goods' have the same excise tax rate?

No, the excise tax rate varies depending on the type of excise goods. For instance, the tax rate for tobacco products is different from that of carbonated drinks or energy drinks.

2. What records to be maintained as per Excise Tax Law in Dubai, UAE?

Businesses subject to Excise Tax in the UAE must maintain detailed records of their operations, including:

• Purchase and sale invoices
• Stock records
• Production records
• Excise Tax returns
• Payments made
• Other relevant documents as required by the Federal Tax Authority (FTA)

These records should be preserved for at least five years from the end of the tax period.

3. What are the Penalties for non-compliance with Excise Tax regulations?

Non-compliance with Excise Tax regulations can result in severe penalties, including:

• Financial penalties
• Interest charges
• Imprisonment in certain cases
• Cancellation of the tax registration
• Seizure of goods

4. How can I determine if my product is subject to Excise Tax?

To determine if your product is subject to Excise Tax, you can refer to the list of excise goods provided by the Federal Tax Authority (FTA). If you are unsure about the classification of your product, it is advisable to seek professional advice from a tax consultant at Shuraa.

5. How often do I need to file an Excise Tax return?

The frequency of Excise Tax returns depends on your business activities. Generally, businesses are required to file returns on a monthly or quarterly basis. However, the specific filing requirements may vary based on the volume of excise goods handled.