The United Arab Emirates (UAE) first introduced the excise tax(indirect levy) in the country in the year 2017 under the Federal Decree Law no. 7. According to the law, excise tax UAE applies to businesses involved in the stockpiling, manufacturing, and importing of goods. They are those goods that pose a threat to the environment or human health in general. It is a type of indirect taxation and the rates are different for different products.
Note: All the good metioned are excise goods
Look at the following instances to know what product falls under the category of goods;
Following are the excise tax(levy) rates by the Cabinet decision no. 52 of 2019 on goods, indirect levy rates, and the methods of calculating the excise price;
The following businesses need to register for indirect levy according to the Federal Decree-Law No. 7 of 2017;
Note: All this will applied for inside UAE only
Following are exemptions from Indirect Tax as stated in the Decree Law;
Note: All the good metioned are excise goods
Following are the excise registration criteria for anyone liable to pay excise levy in 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.
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.