The UAE government has announced new excise tax rates that will come into effect soon and will further increase the prices of some categories of products sold in the country. The introduction of excise tax in the UAE has left many people and businesses wondering how it will affect them. Beyond View is here to answer all your questions about declaring excise duty in the UAE.
Excise tax is an indirect tax imposed on the sale of certain goods. These goods are subject to tax if they are imported into the Dubai, manufactured in the UAE or stored in the UAE. Excise tax is levied on products that are harmful to people or the environment.
The primary purpose of excise tax is to reduce the consumption of that particular good and thus curb unhealthy practices. In certain scenarios, goods will be physically marked to show that excise duty has already been paid to the government.
The new UAE excise rates that will come into effect from 2020 are as follows:
Excise tax in the UAE will apply to all products that are considered harmful to human health or the environment. Here is a look at the list of products subject to excise tax in the UAE.
With the introduction of new products to be levied under the new Excise Law, businesses, manufacturers, importers, warehousers and ware-housekeepers will be required to register their excise goods in the UAE under the new system introduced by the FTA. Businesses already registered for excise tax in the UAE will need to re-register their items.
The new FTA excise tax registration system will be implemented in two phases: The first phase will be the tax registration of sweetened beverages and the second phase will be the registration of electronic smoking devices and liquids used in the devices.
A person must register and pay excise tax if he is engaged in the following activities:
Excise registration is compulsory for all businesses dealing in excise goods in the UAE. This process can easily be done through the e-Services section of the FTA website. All you need to do is login or register with your details on the FTA Excise Portal and follow the simple instructions they have there.
The FTA is currently running free workshops for businesses to train them on the new excise duty system. Businesses can register online on the FTA website for these UAE Excise Workshops.
You have to provide various documents during registration to authenticate your information. Following are the documents: