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Excise Tax Registration

Excise Tax Registration In UAE

Excise Tax registration is mandatory for UAE businesses producing, importing, or stockpiling excise goods such as tobacco, carbonated drinks, and energy beverages. Timely registration helps businesses stay compliant with FTA regulations and avoid penalties.

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Who Is a Taxable Person?

Excise tax in the UAE is an indirect tax imposed on products deemed harmful to human health. These include:

  • Carbonated and energy drinks
  • Tobacco and tobacco products
  • E-cigarettes
  • Sugar-sweetened beverages

Businesses engaged in the production, import, or storage of these goods must register for excise tax in accordance with UAE Federal Decree-Law No. (19) of 2022. Compliance with excise tax regulations helps companies fulfill their legal obligations and avoid penalties.

To simplify the process, businesses can make use of excise tax services, which cover registration, compliance, and filing support. Seeking professional assistance ensures your business remains fully tax-compliant.

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CA Manish Ashwani, Chartered Accountant and CEO of BCA

Overview of Excise Tax Services and Rates

Businesses that deal with excise goods are required to complete excise tax registration in the UAE to comply with the Federal Tax Authority (FTA). This applies to manufacturers, importers, and stockpilers of excise goods.

    Rate of Excise Tax in UAE

    As per Cabinet Decision No. 52 of 2019, the applicable excise tax rates are:

  • 50% on carbonated drinks
  • 100% on tobacco products
  • 100% on energy drinks
  • 100% on electronic smoking devices
  • 100% on liquids used in electronic smoking devices
  • 50% on any product with added sugar or sweeteners
    Updated Excise List and Tax Rates
  • 50% on sweetened drinks
  • 100% on electronic smoking devices and tools
  • 100% on liquids used in electronic smoking devices

For businesses, adhering to excise tax compliance is crucial to avoid penalties. Seeking professional support for excise tax registration ensures smooth navigation through regulatory requirements.

Excise Tax Registration Process in the UAE

Excise tax registration in the UAE is mandatory for all businesses involved in stockpiling, importing, producing excise goods, or releasing them from specially designated zones within the Emirates.

Registration for excise tax in Dubai, UAE, must be completed within 30 days of starting business operations related to excise goods or by the law's effective date, whichever comes first. The following businesses are required to register for excise tax:

  • Importers of excise goods into the UAE
  • Producers of excise goods released for consumption in the UAE
  • Stockpilers of excise goods in certain cases* within the UAE
  • Businesses releasing excise goods from specially designated zones

*In specific cases, even if a business is not a producer or importer of excise goods, it may still be required to register for excise tax in the UAE. This includes stockpilers who began operations before the introduction of federal excise tax and those issuing excise goods from designated zones without being registered.

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Excise Tax Registration Exemptions in the UAE

Excise tax registration in the UAE is mandatory for businesses involved in importing, producing, or stockpiling excise goods such as tobacco products, energy drinks, carbonated beverages, and sweetened drinks. However, certain entities may qualify for exemptions under specific conditions.

Who is Exempt from Excise Tax Registration?

Businesses Not Dealing with Excise Goods

Companies that do not import, produce, stockpile, or release excise goods into the UAE market are not required to register for excise tax.

Entities with Low or Occasional Excise Transactions

Businesses engaging in minimal or infrequent transactions involving excise goods may not be required to register but must comply with Federal Tax Authority (FTA) guidelines.

Government Entities and Certain Free Zones

Specific government bodies and some free zone businesses that do not engage in taxable supplies of excise goods may be exempt.

Non-Taxable Stockpilers

Businesses holding excise goods for personal use rather than commercial purposes are not required to register.

Excise Tax Registration & Compliance Services

If your business is involved with excise goods, compliance with excise tax regulations in Dubai and the UAE is essential. Professional excise tax services can assist with registration, compliance, and filing to ensure seamless operations.

Need assistance with excise tax registration in the UAE? Consult Bright Chartered Accountant to determine your eligibility and ensure compliance with FTA regulations.

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Excise Tax Registration in the UAE: Deadlines & Penalties

Excise Tax Registration Deadlines

Although there is no fixed deadline for excise tax registration in the UAE, businesses must complete the process within 30 days of starting any activity that creates an excise tax obligation.

For businesses involved in the production, import, or stockpiling of excise goods, it is mandatory to secure excise tax registration before beginning operations. Failure to comply can result in penalties and legal complications.

Excise Tax Penalties in Dubai, UAE

Companies engaged in excise activities must follow the UAE's tax regulations to avoid severe penalties. Below are common violations and their related fines:

ViolationPenalty
Not displaying prices inclusive of Excise TaxAED 5,000
Failure to follow proper procedures for transferring excise goods between Designated Zones (including storing, preserving, and processing goods)The higher of AED 50,000 or 50% of the excise tax due on the goods involved
Not submitting price lists for excise goods (produced, imported, or sold)AED 5,000 for the first offense; AED 10,000 for repeat offenses

Important Note: There is no registration threshold for excise tax in the UAE. Any business engaged in excisable activities must register within 30 days of becoming liable.

To ensure compliance and avoid penalties, businesses should seek professional excise tax services in Dubai and across the UAE. Proper registration and adherence to regulatory requirements will help ensure smooth operations and prevent unnecessary financial liabilities.

CA Manish Ashwani, Chartered Accountant and CEO of BCA

Excise Tax Registration: Activities, Goods, and Requirements

Businesses involved in excise-related activities in the UAE may have specific registration and compliance obligations. These can include:

  • Importing excise goods into the UAE
  • Producing excise goods in the UAE before they are released for consumption
  • Stockpiling excise goods in the UAE
  • Managing a designated zone or excise warehouse, such as a warehouse keeper

Businesses carrying out these activities should assess their excise tax obligations and complete the required registration and compliance procedures with the UAE Federal Tax Authority (FTA).

Entities Required to Register for Excise Tax in the UAE

As per UAE Federal Decree-Law No. 7 of 2017 on Excise Tax, businesses involved in the following activities must register for excise tax in the UAE:

  • Importing excise goods into the UAE
  • Producing excise goods in the UAE before they are released for consumption
  • Stockpiling excise goods in the UAE
  • Managing a designated zone or excise warehouse, such as a warehouse keeper

Although the Federal Tax Authority (FTA) offers detailed guidance and excise tax services, businesses are ultimately responsible for completing registration and fulfilling all reporting requirements to remain compliant.

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Who is required to register for excise tax in the UAE?

Excise tax registration in the UAE is compulsory for businesses engaged in importing, producing, or storing excise goods. As per the Federal Tax Authority (FTA), the following entities must register for excise tax:

Manufacturers of Excise Goods

Businesses producing excise goods within the UAE.

Importers of Excise Goods

Companies or individuals importing excise goods into the UAE.

Stockpilers of Excise Goods

Businesses holding excise goods for commercial purposes prior to the implementation of excise tax.

Warehouse Keepers Handling Excise Goods

Companies responsible for storing excise goods in designated zones.

Excise Goods Subject to Tax in the UAE

  • Tobacco and tobacco products
  • Carbonated and energy drinks
  • Sweetened beverages
  • Electronic smoking devices and liquids

To comply with UAE tax laws, businesses must complete excise tax registration via the FTA’s online portal. Non-compliance can lead to significant penalties. Engaging professional excise tax services can help companies ensure smooth registration and ongoing compliance.

Excise Tax Services: Payment & Amendments

1. Paying Late Registration Penalties

If a business fails to clear excise tax registration penalties, follow these steps:

  1. Log in to EmaraTax and open the Dashboard.
  2. Click "View under the Taxable Person section."
  3. Select "My Payments", then navigate to "My Outstanding Penalty".
  4. Click "Select and Pay", then choose your preferred payment method (bank transfer or card payment).

2. Amending an Approved Excise Tax Registration

If you need to update your excise tax registration details in the UAE:

  1. Go to the Excise Tax section.
  2. Click on Actions and select "Amend".
  3. Make the required changes and submit — the updates will be applied instantly.
Excise Tax Services in Dubai

Documents Needed for Excise Tax Registration in Dubai

1. To complete your excise tax registration in Dubai, the following documents must be submitted:

  • valid trade licence or business license
  • Passport or Emirates ID of the authorized signatory
  • Authorization proof for the authorized signatory
  • An official declaration on the company's letterhead (signed and stamped specifically)
  • The nature of activities related to excise goods
  • The type of activity (production, import, or stockpiling)
  • The date operations commenced
  • A bank letter confirming the registrant's bank account details
  • Additional Documents (If Applicable)
  • Articles of Association or Primary/Articles of Authority (not required for individuals)
  • Certificate of Incorporation (for incorporated legal entities)
  • Partnership Agreement (if applicable)
  • Business-related documents outlining the company's activities and operational scale
  • Documents Based on Registration Type
  • Registration documents for clubs, charities, or associations (if applicable)
  • Government decree (for UAE Federal or Emirate Government Entities)
  • Passport or Emirates ID copy of the owner(s)
  • Preparing and submitting these documents accurately will ensure a smooth excise tax registration process in Dubai.

Bright Chartered Accountant, accounting and auditing

Bright Chartered Accountants professionals offer various services for excise tax registration in Dubai. Our FTA-approved tax agents, accountants, and financial advisors assist clients with registration, compliance, and ongoing tax requirements.

As a result, Bright Chartered Accountants has become one of the most recognized names for tax agent services in Dubai. Contact our team if you have any questions about excise registration or wish to learn more about our tax services.

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Frequently Ask Questions

Flexible plans that scale with your business.

Excise tax registration is the process of registering businesses that produce, import, or stockpile excise goods with the UAE’s Federal Tax Authority (FTA).