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Excise tax registration

Requirements of Registering Excise Tax

Excise duty will be required to register through the Authority’s special requirements, which was designed in accordance to facilitate registration for taxable persons and entities involved in activities related to excise goods.

The main purpose of this requirement is facilitating easy registration through federal tax authority, which acts as source information, legislation and tax opinions

Excise tax is ultimately borne by the final consumers but is collected at an earlier stage.

The activities that require registration are

  • Any business which releases excise goods from a designated zone,
  • Imports excise goods
  • produces excise goods
  • or stockpiles excise goods in the UAE, should register for Excise Tax.

Goods that require registration

Here is the list of products an which is required to be registered for excise tax:

  • Energy drinks
  • Tobacco and goods related to tobacco
  • Carbonated drinks except for soda water.

Companies that are engaged in import, production or storing of excisable products should check if they have to be registered at the UAE Federal Tax Authority. They have to make sure if they are required to pay an excise tax.

Documents required for registering excise duty

Registration of excise duty require submission of several documents as mentioned below (not limited to)

Documents related to the person registering for excise duty includes

  • The Details of the applicant (name and other legal details)
  • Contact Details
  • Banking information
  • Business Activity & related information

Declaration 

The declarations that will be required to be filed in order to declare and pay excise tax. Declarations will be required in the following situations:

  • Import of excise goods
  • Production of excise goods
  • Release of excise goods
  • Transfer of excise goods

 Business-related requirements

The person requesting for registration of excise duty has to verify all the required documents before registration

  • Details of business required for registration
  • The role of the person in business for registering for excise tax (producer, importer, etc.).
  • Details of Customs Authority registration, if applicable.
  • If you are registered for excise tax in another GCC State, provide the required details as per the excise rules.
  • Details of the excise goods with which the business is involved.

 Records required to be maintained

Every taxable person is required to maintain the following records:(not limited to)

  • Reports of all produced, imported or stockpiled excise goods
  • Records and evidence of exported excise goods
  • Recording the stock levels, including details of lost or destroyed items
  • Records of excise goods transferred

A tax record that includes the following information:

  • Tax due on imported excise goods.
  • Due tax on produced excise goods.
  • Tax due on excise goods that have been stockpiled.

Take note: The stockpile of excise goods in the UAE. Means a person or a business that holds the stock of excise goods and cannot prove if the goods have been taxed before.

Deadline for registering

There is no registration threshold for excise tax; therefore, any corporation who intends to be involved in any of the activities listed as per government site must register prior to involving in any business activity related to excise goods.

Any person or entity in the UAE dealing with excisable goods should check if they need to be registered with the federal tax authority and what are the requirements to the registered r excise tax. You may seek the guidance of a tax expert for any legal implications. It is the responsibility of entities or any person to ensure that all regulatory requirements related to excise tax are in place.

We at Farahat and co have our team of experts to help with excise registrations. If you have any queries related to requirements and compliance regulations, do contact us for further consultation.