What Is The Procedure For Excise Tax Registration In UAE??
In 2017, the excise tax registration in UAE was established across the country. Excise tax is an indirect tax imposed on certain commodities that are often damaging to human health or the environment. These items are known as "excise goods." The following definitions apply when determining whether a product is an excise good:
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Any aerated beverage, with the exception of unflavored aerated water, is considered a carbonated drink. Any concentrations, powder, gel, or extracts designed to be converted into an aerated beverage are also considered carbonated drinks.
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Energy drinks are defined as liquids that are promoted or sold as an energy drink and contain stimulant ingredients that provide mental and physical stimulation, such as caffeine, taurine, ginseng, and guarana, among others. Any substance that has the same or similar impact as the aforementioned substances is likewise included. Any concentrations, powder, gel, or extracts meant to be turned into an energy increasing drink are also considered energy drinks.
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All commodities listed in Schedule 24 of the GCC Common Customs Tariff are considered tobacco and tobacco products.
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Electronic smoking devices and tools liquids used in such devices, as well as sweetened drinks, are subjected to excise duty from December 1, 2019.
Excise tax rates
The rate of excise duty is as follows, according to Cabinet Decision:
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50% off carbonated beverages
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Tobacco goods are taxed at 100%.
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100% on energizing beverages
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100% on electronic cigarette gadgets
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Liquids utilized in such equipment and tools are taxed at 100%.
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50% off any product that has added sugar or other sweeteners.
The reason for levying excise duty
The UAE government is imposing an excise tax in order to curb consumption of unhealthy and dangerous goods while simultaneously increasing government revenue that can be spent on useful public services.
What impact will it have on consumers?
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For things that are hazardous to human health or the environment, consumers will have to pay a higher price.
Businesses needed to excise tax registration in uae
According to UAE Federal Decree Law No. 7 of 2017 on Excise Tax, every business engaged in:
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the import of excise items into the UAE must register for excise tax.
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the manufacture of excise items for consumption in the United Arab Emirates
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In some situations, anyone who is responsible for monitoring an excise warehouse
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or designated zone, such as a warehouse keeper, is accountable for stockpiling excise items in the UAE.
FTA is committed to assisting with this by offering significant support and guidance; nonetheless, it is the duty of the firm to ensure that all applicable compliance duties are met.
The FTA has the authority to perform audits of taxable corporations and then impose penalties on those who do not follow the law.
What is the procedure for registering for excise tax?
Businesses can register for excise tax on the FTA website's e-services section. They must, however, first register and create an account. For additional information on other services like vat voluntary disclosure in dubai ,you can avail expert advice from various professional accounting firms in dubai.
The registration deadline has passed.
Because there is no registration threshold for excise tax, any corporation intending to engage in any of the activities listed above must register and account for excise tax prior to the date of implementation, which is October 1, 2017.
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Excise Tax Registration in UAE
Vat voluntary disclosure in Dubai
Economic Substance Regulations in UAE
VAT Impact on Restaurants in the UAE
Artificial Intelligence helps in Accounting And Finance
VAT Penalty Reconsideration in Dubai
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