Federal Excise Tax
Every single business in the UAE that produces, imports or stockpiles excise goods, or intends to do so, is necessary to register for the Federal Excise Tax.
The current excise goods with tax rates are the following:
- Tobacco and tobacco products (100%),
- Energy drinks (100%), and
- Carbonated drinks (50%).
Some will be required to register even when you are not a producer or importer of excise goods. The first one will be if you are a stockpiler of excise goods before the federal excise tax introduction. The next will be if you are not registered for Excise Tax but you are releasing excise goods from a Designated Zone.
Taxable activities cannot be carried out by any business unless it has been registered for Excise Tax.
Procedure for Excise Tax Registration
- Every business that is involved in the activities above is required to register. However, an entity may be entitled to a registration exemption in the event that the Federal Tax Authority (FTA) deems it acceptable that you are not regularly importing or releasing excise goods from Designated Zones.
- An entity still needs to register even when it already possesses a Tax Registration Number. A different TRN for Excise Tax will be given when the registration application is successful.
- There can only be one TRN for Excise Tax for one entity. The responsibility of having no duplications in registration lies on you.
- Businesses can register using the Online Excise Tax registration facility provided by Federal Tax Authority
- The excise registration procedure will only take an estimated time of 20 minutes.
- Since the entries that you input are not automatically saved, it is advisable for you to always click the “Save as Draft” every time you add any information on the form.
- If you are inactive for 10 minutes, you will be automatically logged out for data security purposes.
- A TRN for Excise Tax purposes will be provided once the application is approved. This will let you submit your tax returns. Your online excise payment will also be activated so you can pay excise tax online. The services that are related to Excise Tax will be available as well.
Documents Required for the Excise Tax Registration
Various documents that are related to the activities that your business does will be asked during the excise tax registration procedure. The profile and legal status of the applicant will have an effect on what kind of documents will be presented. It will be more convenient in your part if you have below documents before starting the application:
- Trade License(s) (if applicable)
- Certificate of Incorporation (if applicable)
- Customs number(s) issued by Customs department(s) (if applicable)
- Passport, Emirates ID of the manager, owner, and senior management
- Authorized signatory documents
- Articles of Association/Partnership Agreement/Club or Association Registration/Law or Decree (if applicable)
- Bank Account details
In some cases, the copies of these documents need to be uploaded. The following are the only accepted file types: PDF, JPG, PNG, and JPEG. The individual file size limit is 2 MB.
Business: involved in and an ongoing activity/s in any form of the following such as industrial, commercial, professional, trade, etc.
Stockpiler: someone whom or a business that is keeping plenty of excise goods, which the business cannot show have been subject to Excise Tax.
FAR – Farhat Office & Co. is one of the tax consultants in UAE, with more than 30 years of experience in various fields, we can aid you with regard to your excise and taxation concerns with the help of our qualified tax accountants. If you have not yet grasped the idea of Excise Tax in UAE, feel free to contact us.