The United Arab Emirates (UAE) implemented excise taxation in 2017 through Federal Decree Law No. 7 on indirect levy. According to the legislation, it applies to enterprises that store, produce, or import regulated products. These products are generally considered harmful to the environment or human health. It is a type of indirect levy with varying rates for different goods. Compliance with this law is mandatory for businesses handling such items, otherwise penalties may be imposed.
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If a taxable person under UAE ET fails to comply with the regulations of the indirect levy legislation, he will receive an administrative penalty assessment from the Federal Tax Authority. The FTA will send the same assessment after five days if no response is received from the taxable person. The following are the violations that can attract a penalty assessment from FTA;
Note: All the following rules apply to excise goods:
The Cabinet Decision No. 33 of 2019 sets out penalties for violating different procedures involved in implementing excise goods marking. Following are some of these instances;
Note: All the following rules apply to excise goods:
Note: All goods are excise
If you want to ensure compliance while operating in the UAE and avoid related penalties, you must know which products are classified as excise goods. The following is the list of excise goods in the UAE:
Conclusively, noncompliance with the regulations of excise tax in Dubai can lead to major penalties. Therefore, it is advised that businesses that are taxable for ET must take assistance from ET consultants in UAE. Tax consultants in UAE ensure that you remain compliant with the law and save you from heavy penalties.