Excise duty is an indirect tax imposed by the UAE government on the sale, purchase, and production of certain goods and services. These products are harmful to human health and the environment. Excise duty is a domestic tax levied to control the consumption of these goods and raise funds for public welfare. In the United Arab Emirates, companies pay special attention to excise regulations to protect themselves from heavy fines. Bestax chartered accountants help you to register for excise duty and ensure compliance so that your business is legal in this competitive UAE market.
These detailed guidelines will help you understand the excise tax laws in the UAE and how they apply:
Excise duty is not levied on all types of products, but goods that affect living beings and the environment are subject to a certain amount of tax according to government regulations. This includes
- Electronic smoking devices
- Sweetened beverages
- Carbonated and energy drinks
- Petroleum products
- Alcohol and beer.
- Materials used in electronic smoking products
Excise laws in the UAE
Excise laws in the UAE are enforced by the Federal Tax Authorities (FTA), which are responsible for excise compliance obligations in the United Arab Emirates. The UAE Excise Duty Law came into force on 1 October 2017 through the FTA. Later, on 1 December 2019, the law was amended to add more taxable products. The FTA is the UAE’s financial authority that audits companies subject to excise duty and imposes penalties on companies that do not comply with the excise duty law.
All excise companies in Dubai are now required to register for excise duty. BestaxCA is a group of chartered accountants and auditors offering efficient excise services in accordance with the UAE excise laws.
Companies must register for excise duty advice
The following companies in the UAE are required to comply with the rules and register for excise duty advice:
(1) Manufacturers of excisable goods
(2) Importers of excise goods
(3) Excise warehouse keeper
(4) Excise warehouse keepers in the UAE
BestaxCA’s excise duty consultancy services in Dubai include:
Bestax Chartered Accountants is one of the certified tax advisory firms in the United Arab Emirates. Our excise experts will guide you through every step of the excise process to shape the future of your business.
Excise tax rate planning
As you are aware that excise duty consultancy rates vary from product to product, in accordance with UAE Cabinet Decision No. 52 of 2019, the excise duty rates for products are listed below:
- 50% for carbonated beverages
- 100% for tobacco products
- 50% for sweetened beverages
- 100% for electronic smoking devices and instruments
- 100 % for energy drinks
- 100 % for electronic smoking devices
- 100% of liquids used in the following devices and instruments
- 50 % for any product containing added sugar or other sweetening matter
- 100 % of liquids used in electronic smoking devices
Excise duty declaration consultancy services
Excise duty declaration is a complex type of financial service in which all entities are involved in the sale, purchase, and manufacture of products in accordance with FTA standards. However, the lack of knowledge and experience in UAE tax compliance forces companies to seek the assistance of an independent tax advisor. Bestaxca’s professional services help them make sure that their excise tax advisory obligations are correct and submitted to the tax authorities before the due date.
Excise duty training and awareness
Bestax chartered accountants and tax consultants also help employees, executives, managers, and finance staff understand excise tax with excise tax advice, tax compliance services, and other excise tax training. Our goal is to improve your company’s financial position through efficient tax management.
Excise tax registration and filing
Once you have analyzed whether your products are excisable, the key step is the registration and submission of excise duties to the UAE Federal Tax Authority. The excise duty registration requires an official list of documents and then a final report is submitted to the FTA.
What is the penalty for filing an excise duty return?
A penalty for failure to file an excise duty return means that the excise duty file has not been filed for at least 20 working days. Under the current amended rules, the taxpayer must pay the excise duty penalty on the goods from the date on which it was originally due. Failure to file the excise duty return on time is subject to a penalty and a fine of a certain amount by the Federal Tax Authorities (FTA).
Documents required for reporting excise duty in the UAE
Excise Tax Advisory Services in Dubai has a list of documents required to report excise duty, such as:
- Copy of the signatory’s passport and Emirati identity card for authorization.
- Details of the company’s bank account, including IBAN, account number and name, and the name of the bank.
- Customs registration details, if applicable
- Records and supporting documents for all excise goods
- Evidence of goods exported and sold outside the UAE.
- Details of your participation in the registration of excise goods
- Business administration and operational activities and related information
Our strengths in excise tax consultancy in Dubai, UAE
Bestax Chartered Accountants are experts in excise tax advisory audit and compliance services. We are committed to compiling your excise tax return in the UAE to FTA standards. Our considerable experience in these accounting and tax advisory services makes us the best financial advisors in the UAE. With 15 years of experience, Bestaxca overcomes many of its weaknesses and gains strength in excise tax advisory services in Dubai:
- We are compliant with the requirements of the Financial Tax Authority (FTA).
- We are committed to providing 24/7 availability to our clients.
- We provide you with complete guidance on excise compliance
- We calculate and monitor records, invoices, and reconciliations.
- We have an experienced team of certified tax consultants and auditors.
- Our tax reports are fully structured in accordance with the UAE’s official excise laws.
- We take care of your company’s assets and protect you from hefty fines.
- We are registered in all recognized free zones in the United Arab Emirates.
Contact Bestax chartered accountants:
Bestax Chartered Accountants has a complete package of excise tax planning, consultancy, compliance training, and excise tax registration. For more information about our excise tax advisory services in the UAE, contact us at +971 56 7981808.