VALUE ADDED TAX
What We do
Excise tax services in Dubai support businesses that deal with products harmful to health or the environment. The UAE introduced excise tax in 2017 as an indirect tax on specific goods.
Excise tax applies to carbonated drinks, energy drinks, tobacco products, electronic smoking devices, liquids used in these devices, and sweetened beverages. The tax rate is 50% on carbonated and sweetened drinks, while tobacco products, energy drinks, electronic smoking devices, and related liquids attract a 100% tax rate.
Who Needs Excise Tax Services?
Businesses must register for excise tax in the UAE if they are involved in the following activities:
- Importing excise goods: Bringing excise goods into the UAE.
- Producing excise goods: Manufacturing excise goods for consumption within the UAE.
- Stockpiling excise goods: Holding a reserve of excise goods in certain circumstances.
- Operating warehouses or designated zones: Managing areas where excise goods are produced, stored, or handled.
These entities must register with the Federal Tax Authority (FTA) at least 30 days before commencing operations involving excise goods.
Timeframe for Compliance
After registration, businesses must file excise tax returns monthly. They must submit returns by the 15th day following the end of each tax period.
For example, if the tax period ends on July 31, the business must file the return by August 15. Timely filing and payment help businesses avoid penalties.
Pricing of Excise Tax Services
While the FTA does not charge a fee for excise tax registration, businesses may incur costs related to compliance, such as:
- Professional advisory services: Assistance with registration, return filing, and compliance can vary in cost based on the service provider’s expertise and the complexity of the business operations.
- Penalties for non-compliance: Failure to register or file returns on time can result in significant fines. For instance, late registration can attract a penalty of AED 10,000, and failure to file returns on time may result in a fine of AED 1,000 for the first offense, increasing with subsequent offenses.
Working with experienced tax professionals helps businesses meet excise tax obligations, stay compliant, and avoid costly penalties.
Free Estimation
Request A Quote
Invest your time and efforts in running your business. Leave the Taxation part to us
