Excise Tax Registration In UAE

Excise tax registration is a mandatory requirement for businesses involved in the production, import, or stockpiling of excise goods in the UAE. Whether you deal with tobacco products, carbonated beverages, or energy drinks, completing your tax registration UAE ensures compliance with the Federal Tax Authority (FTA) regulations.

Failing to register can lead to penalties, making it essential for businesses to understand the process. In this guide, we’ll break down everything you need to know about excise tax registration in UAE, including eligibility, procedures, and key benefits.

What is Excise Tax?

Excise Tax in the UAE is an indirect tax levied on goods considered harmful to human health. These include:

• Carbonated and energy drinks
• Tobacco and tobacco products
• E-cigarettes
• Sugar-sweetened beverages

Businesses producing, importing, or storing these goods must comply with excise tax registration as per UAE Federal Decree-Law No. (19) of 2022. Proper excise tax ensures that companies meet all legal obligations and avoid penalties.

To streamline the process, businesses can opt for excise tax services, which include registration, compliance, and filing assistance. Ensure your business remains tax-compliant by seeking professional support today!

Understanding Excise Tax Services and Rates

Businesses dealing with excise goods must complete excise tax registration UAE to comply with the Federal Tax Authority (FTA). Excise registration UAE applies to manufacturers, importers, and stockpilers of excise goods.

Rate of Excise Tax in UAE

According to Cabinet Decision No.52 of 2019, the tax registration mandates the following tax rates:

• 50% on carbonated drinks
• 100% on tobacco products
• 100% on energy drinks
• 100% on electronic smoking devices
• 100% on liquids used in electronic smoking devices
• 50% on any product with added sugar or sweeteners

Updated Excise List and Tax Rates

• 50% on sweetened drinks
• 100% on electronic smoking devices and tools
• 100% on liquids used in electronic smoking devices

For businesses, ensuring compliance with excise tax services is essential to avoid penalties. Professional assistance in excise tax registration helps companies to navigate regulations efficiently.

Who Needs to Register for Excise Tax in the UAE?

Excise tax registration in the UAE is mandatory for businesses involved in importing, producing, or storing excise goods. According to the Federal Tax Authority (FTA), the following entities must complete excise tax registration:

1. Manufacturers of Excise Goods: Businesses that produce excise goods within the UAE.
2. Importers of Excise Goods: Companies or individuals importing excise goods into the UAE.
3. Stockpilers of Excise Goods: Businesses that store excise goods for commercial purposes before the introduction of excise tax.
4. Warehouse Keepers Handling Excise Goods: Companies storing excise goods in designated zones.

Excise Goods Subject to Tax in the UAE

• Tobacco and tobacco products
• Carbonated and energy drinks
• Sweetened beverages
• Electronic smoking devices and liquids

To comply with UAE tax laws, businesses must undergo excise registration in UAE through the FTA’s online portal. Non-compliance can result in penalties. Companies can seek excise tax services from expert tax consultants to ensure smooth registration and compliance with excise tax regulations.

Excise Tax Registration in UAE

Excise Tax registration in UAE is mandatory for all businesses which stockpile, import, and produce excise goods or release them from specially designated zones in the Emirates.

Registration for Excise Tax in Dubai, UAE, must occur within 30 days after the business opens or conducts excise goods activity or by the law's effective date, whichever comes earlier. Here is a detailed list of the companies that must mandatorily register for excise tax in the UAE:

• Import of excise goods into the UAE
• Production of excise goods, where they are released for consumption in the UAE
• Stockpiling of excise goods in some instances* in UAE
• Release of excise goods from specially designated zones

*In some instances, businesses must register for excise tax in UAE even though they are not producers or importers of excise goods. This also includes stockpiles of excise goods who started business operations before the UAE federal excise tax was introduced and issuing excise goods from Designated Zones but not registered for UAE Excise Tax.

Excise Tax Registration: Activities, goods and requirements

There are no special requirements or registration threshold for excise tax. Therefore, businesses involved in the mentioned activities must register their account for excise tax. Excise Tax in UAE is applied on the following goods:

• Carbonated drinks (all aerated beverages except unflavored aerated water)
• Energy drinks*
• Tobacco & tobacco products
• Electronic smoking devices/tools (e-cigarettes, vapes, etc.)
• Liquids present in smoking devices/tools
• Artificially sweetened drinks

*This includes those beverages that are marketed or sold as energy drinks, and which contain stimulant substances providing mental & physical stimulation.

Businesses Required to Register for Excise Tax in the UAE

Under UAE Federal Decree-Law No. 7 of 2017 on Excise Tax, businesses engaged in the following activities must complete excise tax registration UAE:

• Importing excise goods into the UAE
• Producing excise goods in the UAE before they are available for consumption
• Stockpiling excise goods in the UAE
• Managing a designated zone or excise warehouse, such as a warehouse keeper

While the Federal Tax Authority (FTA) provides extensive guidance and excise tax services, businesses are responsible for ensuring compliance with complete registration and reporting requirements.

Exemptions from Excise Tax Registration in the UAE

Excise tax registration in the UAE is mandatory for businesses involved in importing, producing, or stockpiling excise goods, such as tobacco products, energy drinks, carbonated beverages, and sweetened drinks. However, certain entities may be exempt from tax registration under specific conditions.

Who is Exempt from Excise Tax Registration?

1. Businesses Not Dealing with Excise Goods
   If a company does not import, produce, stockpile, or release excise goods into the UAE market, it is not required to register for excise tax.
2. Entities with Low or Occasional Excise Transactions
   Businesses that engage in minimal or occasional transactions involving excise goods may not be required to register. However, they must ensure compliance with the Federal Tax Authority (FTA) guidelines.
3. Government Entities and Certain Free Zones
   Some government bodies and specific free zone businesses that do not engage in the taxable supply of excise goods may be exempt.
4. Non-Taxable Stockpilers
   Businesses holding excise goods for personal use rather than commercial purposes do not need to register.

Excise Tax Registration & Compliance Services

If your business deals with excise goods, you must comply with excise tax regulations in Dubai and the UAE. Professional excise tax services can help with excise duty registration, compliance, and filing to ensure smooth operations.

Need help with excise tax registration in UAE? Consult with a Shuraa tax expert to determine your eligibility and ensure compliance with FTA regulations.

Excise Tax Registration in the UAE: Deadlines & Penalties

Excise Tax Registration Deadlines

While there is no fixed deadline for excise tax registration in the UAE, businesses must complete the process within 30 days of initiating any activities that create excise tax obligations.

For entities involved in the production, import, or stockpiling of excise goods, it is mandatory to obtain excise duty registration before commencing operations. Failure to do so may result in penalties and compliance issues.

Excise Tax Penalties in Dubai and the UAE

Businesses failing to comply with excise tax registration Dubai and UAE regulations may face significant administrative fines. Below is an overview of key violations and corresponding penalties:

Businesses should seek professional excise tax services in Dubai and the UAE to ensure compliance and avoid penalties. Proper registration and adherence to regulatory requirements will help maintain smooth operations and avoid unnecessary financial liabilities.

How to Register for Excise Tax in UAE

Excise tax registration in UAE is essential for businesses involved in producing, importing, or stockpiling excisable goods such as tobacco, energy drinks, and sweetened beverages. The process is conducted online through the EmaraTax portal, managed by the Federal Tax Authority (FTA).

For a smooth and error-free excise tax registration UAE, businesses should consult reliable tax experts like Shuraa Tax Consultants. Their expertise ensures compliance with UAE regulations, preventing costly mistakes.

Steps to Register for Excise Tax in UAE

Step 1: Create an e-Services Account on EmaraTax

1. Visit the FTA website and access the EmaraTax portal.
2. Sign up by creating a username and password.
3. Verify your email address within 24 hours.
4. Log in to your e-Services account.

Step 2: Register for Excise Tax

1. Initiate Registration
   1. Click on 'Register for Excise Tax' from the dashboard.
   2. Read the guidelines and instructions, then select 'Start'.
2. Complete the Application Sections
   1. Entity Details: Select and enter your business entity type.
   2. Identification & License: Provide details of your trade license.
   3. Business Activities: Specify all related business activities.
   4. Owners & Branches: Enter ownership details and branch information.
   5. Contact & Business Relationships: Enter business address and relationships (optional).
   6. Bank Details: Provide your banking information (optional).
   7. Excise Tax Details: Declare excisable activities and goods.
   8. Customs Details: Provide customs registration information and upload required documents.
   9. Authorised Signatory: Auto-filled if the Manager/CEO is the signatory.
   10. Review & Submit: Confirm all details and click 'Submit for Approval'.
3. After Submission
   1. A reference number is generated for tracking.
   2. The FTA reviews the application within approximately 20 business days.
   3. The FTA may approve, reject, or request additional information.
   4. Applicants can track their excise tax registration UAE status on the EmaraTax dashboard.

Excise Tax Services: Payment & Amendments

1. Paying Late Registration Penalties
Some businesses may need to settle late excise duty registration penalties. Follow these steps:

• Log into EmaraTax and go to the Dashboard.
• Click 'View' under the Taxable Person section.
• Select 'My Payments', then go to 'My Outstanding Penalty'.
• Click 'Select and Pay', choosing bank transfer or card payment.

2. Amending an Approved Excise Tax Registration
If you need to update your excise registration UAE details:

• Go to the Excise Tax section.
• Click on 'Actions' and select 'Amend'.
• Make necessary changes and submit — updates are applied instantly.

Required Documents for Excise Tax Registration in Dubai

To complete your excise tax registration in Dubai, you must submit the following documents:

Mandatory Documents

• A valid trade license or business license
• A passport or Emirates ID of the authorised signatory
• Authorisation proof for the authorised signatory
• An official declaration on the company’s letterhead (signed and stamped), specifying:
  • The nature of activities related to excise goods
  • The type of activity (production, import, or stockpiling)
  • The date operations commenced
• A bank letter confirming the registrant’s bank account details

Additional Documents (If Applicable)

• Articles of Association or Power of Attorney (not needed for individuals)
• A Certificate of Incorporation (for incorporated legal entities)
• A Partnership Agreement (if applicable)
• Business-related documents outlining the company’s activities and operational scale

Documents Based on Registration Type

• Registration documents for clubs, charities, or associations (if applicable)
• A government decree (for UAE Federal or Emirate Government Entities)
• A passport or Emirates ID copy of the owner(s)

Ensuring all necessary documents are prepared and submitted correctly will help facilitate a smooth excise tax registration process in Dubai.

Consequences of Non-Compliance

Non-compliance with excise tax regulations, including failure to register, delayed payments, or disregarding FTA guidelines, can lead to substantial penalties:

• Failure to register within the deadline: AED 20,000
• Delayed tax return filing: AED 1,000 for the first offence; AED 2,000 if repeated within 24 months
• Late payment penalties: [Details to be added as needed]

Business details required for Excise Tax registration in UAE

• Role for excise tax registration (importer, producer, etc.)
• Details of the excise goods the business trades in
• Details of Customs Authority registration (if applicable)
• Declaration
• TRN for GCC state if your business is registered for excise tax in another GCC state

Choose the best excise tax registration services in Dubai

If your UAE business deals with importing, producing, or stockpiling excise goods, Shuraa Tax will assist you with end-to-end excise tax registration in Dubai. Our team of highly qualified tax agents assist you with your excise registration, excise return filing, etc.

Shuraa Tax Accounting & Auditing

Shuraa Tax offers expert services for excise tax registration in Dubai. Our FTA-approved tax agents, accountants, and financial advisors work to assist, guide, and support your firm in every possible direction. We help companies make informed decisions about every financial difficulty related to VAT, excise tax registration, impact assessment, and other taxation issues.

Accordingly, Shuraa Tax Accounting & Auditing is Dubai's most noticeable brand for tax agents. Feel free to contact our team if you have any doubts or queries related to excise registration or want to know about our other services.

FAQs