Excise Tax Registration Services in Dubai, UAE
Businesses dealing in specific goods within the UAE observe stringent rules as provided by the excise tax system. Since the introduction of Federal Decree-Law No. 7 of 2017 on Excise Tax, companies have been expected to register, file returns, maintain records, and pay tax on products that negatively affect health or the environment.
This service page provides a simple, clear, and legally aligned explanation to help you understand how excise tax registration works and how our team supports businesses across the UAE.
Understanding Excise Tax within the UAE
Excise tax is an indirect tax levied on products that harm human health or the environment. Excise tax was introduced in October 2017, and it is regulated by the FTA.
Excise tax is levied on the following goods:
- Tobacco and tobacco products
- Energy drinks
- Electronic smoking devices
- Liquids used in electronic smoking tools
- Carbonated drinks and sparkling water
- Products with added sugars or sweeteners
This means that excise tax would be payable on the import, production, or stockpiling of such goods in the UAE.
Enquiry Now
Documents required for Excise tax registration
The following are the documents needed in registration of excise tax in the UAE.
Businesses are required to submit and post several important documents via the EmaraTax portal in order to register their businesses at the Federal Tax Authority (FTA). These are documents that are applied to confirm the legal person, the scope and operations of businesses in regard to excisable goods.
Mandatory Documents:
- Legal Trade License / Business License.
- Certificate of Incorporation (where applicable).
- Authorized signatory Emirates ID and Passport.
- Evidence of the authorization of the authorized signatory (e.g. power of attorney).
- Formal notice on company letterhead dated and stamped by the responsible party fulfilling the role of the signature as follows:
- Excise goods (e.g. import, production, stockpiling) activities.
- Kind of exercise and date of commencement.
- Bank letter certifying details of bank account of the registrant.
Other / Supporting Documents (can change depending on the case):
- Law Organization Legal Documents (Articles of Association, Partnership Agreement, Power of Attorney).
- Information regarding excise goods entailed.
- Registration information (on customs) (when importing).
- Warehouse information (on warehouse keepers).
- Registering to Pay Excise tax in the UAE.
- Registration is to be done online via the FTA portal EmaraTax.
Step by Step to Register Excise Tax in the UAE
There are specific ways that need to be followed to register for excise tax in the UAE.
- Register and open an EmaraTax Account on the FTA website.
- The Dashboard is accessed by logging into EmaraTax.
- Select New Taxable Person Profile in case not already created.
- Click on Excise Tax: Register.
- Fill in the Registration Form:
- Enter business details.
- Upload required documents.
- Determine excisable goods and activities.
- Make an application and keep a note of the reference number.
View the status of application in EmaraTax; FTA will either approve or decline the application or demand further information.
When to Register for Excise Tax?
Deadline: approximately 45 minutes (when papers are prepared).
FTA Review: Within 20 business days of receiving full submission.
The period when excise tax should be registered.
According to the UAE law, the registration of excise tax does not require a minimum threshold- in other words, a single excisable transaction will result in the requirement.
General Timing Rules:
✔ In case you want to be engaged in any activity related to excise (import, production, stockpiling or release in/out of designated areas), you need to get in touch with FTA and file an application.
✔ You should be registered within 30 days after the end of that month you had started or were to start that activity.
✔ The registration will be in effect on the first day of the month when the activity began or intention to begin was made.
Example:
In case you initially import excise goods on 10th April, then you have to register by 30th May and your excise registration will take effect on 1 st April.
Who is not required to register?
Not all entities and individuals will be required to register excise tax since they will not be operating taxable activities. These include:
- Last consumers who use excise commodities as personal consumers.
- Retailers that sell already taxed excise goods, and are not importing or holding stock.
- Logistics and transport companies which neither own, import, produce, or stock excise goods.
Some exceptions may be made under the FTA where entities that have rarely imported or released goods can only do so in some instances with only infrequent involvement (or less than once every 6 months or fewer than 4 times in 24 months) being accepted.
What are the business details required for the excise tax registration?
Precise business information that should be provided by FTA during registration includes:
- Entity Information:
- Name, address of the legal company according to the trade license.
- Trade license number.
- Official signatory information (name, Emirates ID, passport).
- Activity and Product Details:
- Excise activities (e.g. importer, producer, stockpiler, warehouse).
- Languages of excise goods that the business handles (carbonated beverages, tobacco, energy drinks, etc.).
- Financial and Operational Information:
- Bank account information (bank letter confirmation and IBAN).
- Registration code of customs in case of importing goods.
- Details of warehouse (when a warehouse keeper).
Excise Tax Registration Deadlines and Penalties
Excise tax registration needs to be completed before conducting any taxable activity. Businesses are prohibited from importing, producing, or storing excise goods before getting approval from the FTA.
Ongoing Compliance Requirements
Businesses must:
- File monthly excise tax returns
- Pay taxes every tax period.
- Keep complete records of inventory and sales
- Update business details on the FTA portal
Common Fines
UAE Cabinet Decision No. (49) of 2021 and FTA guidelines categorically prescribe the excise tax penalty that shall be levied in such cases.
The following is a brief overview of the most common penalties as per UAE law:
| Violation | Applicable Fine/Penalty |
|---|---|
| Failure to register for excise tax | AED 10,000 |
| Failure to file excise tax return on time | AED 1,000 (first offence), AED 2,000 (repeated offence within 24 months) |
| Late payment of due excise tax | 14% per annum calculated daily |
| Failure to maintain proper records | AED 10,000 for the first instance, AED 20,000 for repetition |
| Submitting false or misleading data | AED 5,000 |
| Not displaying prices inclusive of excise tax | AED 5,000 or more depending on severity |
These fines accumulate quickly, so it’s always the better and less costly choice to stay compliant.
Who should register for Excise tax?
According to the UAE tax law, the following businesses have to register under Excise Tax:
- Importers of excise goods
- Producers or manufacturers
- Stockpilers holding excess inventory
- Wholesalers and distributors of excise goods
- Warehouse Keepers operating excise warehouses
- Retailers of excise goods (in some cases)
- The end consumers who import excise goods into the UAE in excess of the permitted limit.
This would mean any transaction subject to tax must first take prior approval from the FTA before the enterprise can start the business.
Why is Excise Tax Registration important to businesses in Dubai?
Excise tax registration is a very important aspect in the running of a compliant business.
Key Benefits
- Ensures legal compliance with UAE tax laws.
- Avoids severe penalties and administrative fines
- Enables the easy, efficient flow of goods through customs clearance.
- Avoids disruption in the supply chain.
- Closely monitors the inventory tracking.
- Ensures transparency in financial reporting.
- Builds trust with banks, suppliers, and distributors
- Supports smooth FTA audits.
- It helps to maintain a good business reputation in Dubai.
No businesses dealing in excise goods can operate legally without obtaining their Excise Tax Registration Number (TRN).
Why Choose Our Excise Tax Registration Services
Our team of FTA-approved tax consultants helps companies with excise registration and compliance throughout the year.
What We Offer
- End-to-end support on excise registration.
- Product classification to identify excise goods
- FTA Review of Required Documentation
- Fast submission via FTA’s online system
- Assistance with excise tax filing and calculations
- Compliance assessment to reduce risks
- Expert advice dedicated to Dubai and UAE-based businesses.
- Assisting in responding to FTA queries or audits
We’ll ensure that your business meets all of the requirements necessary before engaging in any taxable activity.
Benefits of Using Our Professional Excise Registration Assistance
Working with an experienced excise consultant offers several key advantages:
- Minimizes the possibility of penalties.
- Ensures goods are correctly classified.
- Saves time because it eliminates doubled submissions.
- Keeps your business updated with the latest excise rules.
- Helps in maintaining proper record-keeping.
- Supports tax planning and cash flow management.
- Provides guidance for any excise tax exemptions, where applicable.
- Helps prepare for FTA audits
- Ensures compliance within designated zones.
- Provides ongoing support for all taxing periods.
Common Mistakes Businesses Make
Businesses often have errors, which result in fines. Common issues include:
- Failure to register prior to commencement of operations
- Backdated tax payments
- Product Misclassification
- Applying improper rates of excise taxes
- Calculation of Retail Selling Price (RSP) Errors
- Poor record-keeping of inventory, imports, and sales
- Delayed submission of monthly tax returns
- Not preparing the necessary documents for FTA audits
You will have smoother operations and be in a better financial position if you can avoid these mistakes.
Enquiry Now
Top 5 Excise Tax Registration Companies in Dubai
Following are five well-known companies that assist businesses with excise tax registration:
- Farahat & Co.: Specialized in excise registration, tax filing, and compliance with FTA, including fast turnaround and personalized support for Dubai businesses.
- PwC Middle East: Provides strong technical expertise in advisory and compliance excise services.
- KPMG UAE: Globally renowned for tax documentation and excise policy advisory.
- Deloitte UAE: Helps businesses with excise classification, audits, and tax reporting.
- Ernst & Young (EY) UAE: Provides large-scale advisory support for multinational businesses dealing with excise products.
Frequently Asked Questions
Who must register for excise tax in the UAE?
Any business that imports, produces, stores or sells excise goods.
What's next after excise tax registration?
You are required to file returns monthly, maintain records, and pay excise tax on time to be in compliance.
Is There A Threshold For Registering For Excise Taxes?
No, even one transaction requires registration.
When should the business register?
Before engaging in any kind of activity that may be taxable.
How to apply for an excise tax license?
In order to apply excise tax license, you will have to:
- Create and log in to EmaraTax.
- Create an entire business profile.
- Register Excise Tax and complete necessary details.
- Post required papers and submit.
On approval, the FTA will revise and grant a Tax Registration Number (TRN).
What is the process for registering for federal excise tax?
The process is:
- Set up an EmaraTax account.
- Complete business details.
- Upload required documents.
- Applications: Fill and follow up on an application.
FTA can seek further information or clarification to be permitted.
Excise tax filing deadlines after registration
Enrolled persons are normally required to submit excise tax returns on a monthly basis via the FTA portal in case you owe excise taxes. This implies that excise tax paid on a monthly basis should in general be reported and paid on the 15 th of the next month unless the FTA decides to publish different filing cycles in particular cases.
Can excise tax registration be revoked or cancelled?
Yes. In case your business is no longer engaged in any activity so that it does not need any excise tax registration (there is no import, production, stockpiling, etc.), you can request deregistration of excise tax with the FTA. Upon approval, the excise liabilities would expire on the day the FTA would accept the deregistration.
How long does it take for excise tax registration to be approved?
Upon the complete application with all the necessary documents submitted, the FTA standard processing time is not more than 20 business days.
Unfinished or wrong applications could cause delays before more information is availed.
How is excise tax calculated?
Using the Retail Selling Price, RSP, or import value, CIF plus customs duties depending on the product.
+971 52 6922588 | Tel: +971 4 2500251 | E-mail: sales@farahatco.com
