Excise Tax Consultation
Introduction
Excise tax in the UAE is an indirect tax applied to products that negatively impact health or the environment. The Federal Tax Authority (FTA) introduced this system to reduce the consumption of such goods and support public health initiatives. Businesses dealing in excisable products must follow strict FTA compliance rules to avoid heavy penalties. Farahat & co. can help you in providing the relevant services when it comes to excise duties in the UAE
What is Excise Tax?
The UAE implemented its national framework for indirect taxation in 2017, which introduced excise tax. This tax applies to the importation, production, release from designated zones, and commercial storage of excise goods. The consultants offer expert advice regarding registration, compliance, reporting, and risk management. They are meant to assist businesses in ensuring that they are coordinated with the FTA regulations, in addition to reducing the tax liabilities.
What is Excise Tax Consultation?
It means consultation that is a specialized tax service helping businesses meet FTA excise compliance requirements. Our consultants in Dubai assist businesses with registration, return filing, and audit preparation to ensure full compliance with UAE laws. They also provide guidance on reporting and risk management, helping companies stay aligned with FTA standards while minimizing tax exposure. Their role is to help companies remain aligned with FTA rules while minimizing tax exposure.
Get A Quote
Who Must Register for Excise Tax in the UAE?
Any business that imports, manufactures, stores, or releases excisable goods in the UAE must register with the FTA to ensure full legal compliance.
- The task is straightforward: ensure compliance and safeguard business continuity in regulated industries.
- Stockpile excise goods in commercial quantities.
- Release excise goods from designated zones.
Any company unsure about its excise status should seek expert evaluation to determine its compliance responsibilities.
What Services Offered by Excise Tax Consultants ?
Registration & Onboarding
- FTA portal registration
- Excise goods classification.
- Designated zone approvals
Working with professional consultants ensures timely registration and prevents costly FTA penalties.
Advisory, Planning & Strategy
- Minimum price rule pricing strategies.
- Excise exposure and cost impact analysis.
- advice on importation and exportation.
The goal is to enhance operational efficiency by improving tax classification, documentation, and reporting accuracy.
Audit & Dispute Support
Consultants handle all communications with the FTA during audits and ensure that all required documentation is properly prepared and submitted
Result: Reduced compliance risks and decreased penalties.
Staff Training
- Awareness programs within the organization.
- Documentation requirement and reporting training.
Benefit: Minimizes errors in submissions and ensures employees understand documentation and reporting requirements
Audit Support (pre-audit Review)
- Determination of areas of compliance weaknesses.
- Pre-official audit corrective measures.
Aim: To have clean compliance position.
Return Filing
- Filing and presentation of correct returns.
- Goods movement reconciliation.
Output: Error-free reporting periods.
Enquire Now
What are the items in the UAE that are subject to excise tax.
100%
- Tobacco products
- Electronic smoking devices
- Liquids in e-cigarettes (contain or do not contain nicotine).
50%
- Carbonated drinks
- Soft drinks that contain added sweeteners or sugar.
- Energy drinks
Companies operating in these industries must seek professional guidance to remain compliant with FTA laws and avoid penalties.
Why Businesses Need an Excise Tax Consultant in Dubai
- Importation or excisable goods manufacture.
Before releasing goods into the market, consultants ensure proper registration and accurate tax calculation in line with FTA requirements.
- Multifaceted Supply Chain Processes.
The excise reporting should follow the movement of the products at all the value chain levels.
These workflows are analyzed by the consultants and complied controls are implemented.
- Tax Efficiency and Operational Optimization.
The strategic planning assists businesses in minimizing the unnecessary tax liability.
This involves the checking of minimum pricing and accuracy of classification.
- New Product Lines / Markets.
Consultants evaluate new goods before they are launched in terms of the excise regulations.
This helps avoid unforeseen expenses and shortages of supply.
Common Compliance Questions Answered
| Question | Summary Answer |
|---|---|
| When should a business hire an excise consultant? | As soon as it starts dealing with excisable goods. |
| What types of goods are covered? | Tobacco, sweetened and carbonated beverages, energy drinks, and vaping products. |
| What if a business is unsure about compliance? | Conduct a product assessment with specialists immediately. |
| How do consultants help with supply chains? | They monitor and document each stage of product movement. |
| What if a company receives an audit notification? | Engage advisors to manage submissions and audits. |
| How do consultants reduce tax risks? | Through planning, documentation, and operational restructuring. |
What are UAE Laws and Regulatory Framework
Compliance is regulated under:
- UAE Federal Decree-Law No. 7 of 2017 on Excise Tax
- Cabinet Decision No. 52 of 2019 on Excise Goods
These laws govern:
- Registration
- Pricing and valuation
- Reporting requirements
- Product classification
- Designated zone controls
The FTA maintains strict enforcement of laws, and penalties are imposed for late registration, incorrect filings, or poor record-keeping.
Excise Tax Consultancy and Compliance Services in Farahat and Co
Professional services typically include:
- Registration and portal setup.
- Compliance reviews and ongoing reporting management
- Audit defense and risk mitigation.
- Documentation and record-keeping
- Tax-efficient strategic advisory.
- Training for operational teams
- Import/export compliance guidance.
The objective is simple: maintain compliance and protect business continuity in regulated industries.
Enquire Now
Specialist Excise Tax Guide Services to Business in Dubai
Partnering with an experienced excise tax consultant in Dubai ensures full compliance with UAE regulations, helping businesses stay efficient, transparent, and penalty-free. A professional advisor assists businesses through registration up to reporting as well as assisting them when it comes to audits and regulatory changes. This assists organizations to ensure efficiency in their operations and safeguard the profitability and fulfill the UAE excise requirements.
Who is Exempt from Excise Tax in UAE?
Following are exemptions from Indirect Tax as stated in the Decree Law;
- A person who imports product but not regularly can be exempt from indirect levy. Such a person has to prove to the authority about his claim to not import goods regularly.
- The exempt person as stated above also needs to report to the authority whenever his circumstances change and he feels that he falls under the scope of indirect levy.
- A person who exports goods from the UAE is also exempt from indirect levy in the UAE.
Note: All the good metioned are excise goods
How to do Excise Tax Registration in UAE?
Following are the excise registration criteria for anyone liable to pay excise levy in UAE;
- Any person who falls under the scope of excise tax has to register with the relevant authority within thirty days after the end of the particular month in which the person performed or intends to perform the taxable activities.
- FTA (Federal Tax Authority) has launched an E-services portal where they accept registrations for excise levy. All you have to do is create an account, sign up, and start the registration process.
- Registration can be done any time before starting the production, stocking, or importing of goods in UAE.
Enquire Now
What is the Deadline for Excise Tax Registration UAE?
There is no particular date or deadline for the registration of indirect tax. Any person who intends to perform taxable activities such as production, stocking, or importing of products must register with the FTA before starting the process. However, if a person performs taxable activities, he must register within thirty days after the end of the particular month in which the person performed taxable activities. You can also seek assistance from indirect levy consultants to know your liabilities correctly.
How to Pay Indirect Tax(Excise Tax) in UAE?
When a person successfully registers for indirect levy in UAE, the next step is to pay the indirect levy . The indirect levy must be paid within fifteen days after the end of every levy period. Emaratax is the online e-services portal launched by the FTA which is mainly used to register, file, or pay indirect levy. It offers instructional videos and frequently asked questions to help you utilize the site effectively. Emara Tax connects with the Central Bank of the UAE and UAE PASS to improve the customer experience. The process of registering, filing, or paying indirect levy can be done seamlessly with the help of tax consultants in UAE. Submit your indirect levy registration application as soon as possible if you are a taxable person.
Conclusively, businesses that are involved in the production, stocking, or importing of products or services must contact expert indirect levy consultants in the UAE and fulfill their obligations. Expert levy consultants in UAE do your important tasks with great care so that you don’t have to worry.
Enquire Now
Frequently Asked Questions
Which goods are excised in Dubai?
Who is required to be registered to excise tax?
At what time shall registration be conducted?
What are the prevailing excise tax rates?
What is the role of consultants in audits?
What are the laws that govern the excise tax?
Is there any punishment in case of failure?
Contact Farahat & Co’s consultants in Dubai today to ensure your business stays compliant with UAE FTA regulations.
+971 52 6922588 | Tel: +971 4 2500251 | E-mail: sales@farahatco.com
