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Steps to Register Excise Tax in UAE

Registration for excise tax is a mandated process to continue any business dealing with excise goods. The Federal Tax Authority provides the flexibility of registration for the excise duty using an online portal.  The groups that require to register excise tax in UAE are (not limited to)

  • Importing of excise goods into the UAE
  • Production of excise goods when they are released for consumption in the UAE
  • The stockpiling of excise goods in the UAE in certain cases (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.)
  • The release of excise goods from a designated zone

Must read : Sugary Drinks and E-cigarettes to Cost More starting December 1

Procedure of registration for excise tax online

  1.  Registration of excise duty

An applicant should provide the following while registering for excise tax UAE

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

Several declarations 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
  • Deductible tax
  1.  Verifying the details

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

  • Business details required for registration
  • The role in which you are registering for excise tax (producer, importer, etc.).
  • Details of the excise goods with which the business is involved.
  • Details of your 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.
  1.  Approval

After verifying all the details, submit the above-mentioned documents to the relevant authority for approval. If the authority feels that documents submitted are true to, he may approve the registration. registration of excise duty may go through relevant stages of approval

You may be interested in reading: Good News: FTA Issues list of Products Exempted from New Introduced Excise Tax

Stages of Excise Tax Approval

The stages that an excise tax registration may go through are as follows:

  1.  Approval or Rejection

Rejection

The relevant authority may reject the registration of excise tax for below mention reason:

  • The form submitted is incomplete
  • Does not provide the required information about goods to be taxed
  • Clerical mistakes
  • Does not provide the details of the business activity

  Approved

If all the documents related to excise duty is true and correct the relevant authority may approve the clients request for registration of excise tax.

Find out more details: Penalties Imposed for Breaching Excise Law in UAE

 Exceptions to register Excise Tax

A person may be excepted form excise tax registration if he can demonstrate to the authority that he will not regularly carry out any activity related to excise goods.

The person excepted from registration must notify the relevant authority about any change to his operations within the provisions. The person may seek the guidance of a certified tax expert who can give a better understanding of the exceptions for registration of excise duty.

The process to register excise duty is very simple and straightforward. But dealing with new technology also has its complications. Late or wrong registration of excise duty can subject to excise tax penalties from relevant authorities. Farhat & Co, with its team of certified tax experts, understand all the requirements and necessities to register excise tax. You can appoint one of our VAT consultants as your representative for the tax related issues and also get help consulting them about the excise tax related laws in the UAE.