Excise Tax Registration Services in the United Arab Emirates
Excise Tax Registration: In the United Arab Emirates, it is mandatory for any business involved in the production, importation, or stockpiling of excise goods to register for the Federal Excise Tax. This requirement also extends to businesses planning to engage in such activities.
Categories of Excise Goods and Associated Tax Rates
The items subject to excise tax, along with their respective rates, are as follows:
- Tobacco and tobacco-related products: 100%
- Energy drinks: 100%
- Carbonated beverages: 50%
Additional Registration Scenarios
There are specific conditions under which businesses must register for excise tax in the UAE, even if they are not directly involved in the production or importation of excise goods. These scenarios include:
- Businesses stockpiling excise goods prior to the introduction of the Federal Excise Tax in the UAE.
- Businesses not registered for Excise Tax in the UAE, but engaged in releasing excise goods from a Designated Zone.
Please note that conducting any taxable activities related to excise goods is prohibited unless the business is registered for the Federal Excise Tax.
Impact of Taxation on Public Finances and Economic Development
As declared by the Dubai government, the standard VAT rate for all goods and services in the UAE is set at 5%, one of the lowest globally. The law provides for four VAT exemptions and 14 zero-rated items. The revenue generated from these taxes is earmarked for investment in infrastructure and public services, thereby contributing to the economic advancement of the country.
Guidelines for Excise in the UAE
Mandatory Registration Requirements
All businesses engaged in relevant activities must register for Excise Tax. However, exceptions to this mandate may be granted if the Federal Tax Authority (FTA) determines that the entity is not consistently importing or distributing excise goods from Designated Zones.
Separate Registration Even with Existing TRN
Entities already in possession of a Tax Registration Number (TRN) must still undergo separate registration for Excise Tax. Upon successful completion of the application, a distinct TRN specific to UAE Excise Tax will be assigned.
Uniqueness of TRN for Excise Tax
Each entity is eligible for only one TRN for Excise Tax purposes. It is incumbent upon the registrant to ensure that no duplicate registrations occur.
Online Registration Platform
Businesses may avail themselves of the Online Excise Tax Registration facility provided by the Federal Tax Authority for a streamlined registration process.
Estimated Time Commitment
The registration process is designed for efficiency and is estimated to take approximately 20 minutes to complete.
Data Preservation Measures
Given that form entries are not saved automatically, it is recommended to frequently click the “Save as Draft” button while filling out the form to prevent data loss.
Session Timeout for Security
For data security considerations, sessions will automatically time out following 10 minutes of inactivity.
Post-Registration Services
Once your application has been approved, a TRN specific to Excise Tax will be issued. This enables you to file your tax returns electronically and activates the online payment facility for settling Excise Tax obligations. Additional services related to Excise Tax will also become accessible post-registration.
Excise Tax Registration Required Documentation for Excise Tax Registration in the UAE
During the process of registering for excise tax in Dubai, various documents corresponding to your business activities will be requested. The specific documents required will vary depending on the nature, legal status, and profile of the applying entity. To expedite the registration process, it is advisable to have the following documents at hand prior to initiating your application:
- Trade License(s), if applicable
- Certificate of Incorporation, if applicable
- Customs Number(s), issued by the relevant Customs Department(s), if applicable
- Passport and Emirates ID for the business owner, manager, and senior management
- Authorized Signatory Documents
- Articles of Association, Partnership Agreement, Club or Association Registration, Law or Decree, if applicable
- Bank Account Details
In certain instances, digital copies of these documents must be uploaded. Please note that only the following file formats are accepted: PDF, JPG, PNG, and JPEG. The maximum allowable file size for individual documents is 2 MB.
Key Definitions:
- Business: Engaged in ongoing activities that may fall under categories such as industrial, commercial, professional, trade, among others.
- Stockpiler: An individual or business entity in possession of a large quantity of excise goods, for which there is no documentation to confirm that excise tax has been paid.
Expert Consultation Services:
MP Elites Consulting, one of the leading tax consultancy firms in the UAE with over 20 years of multi-sector experience, stands ready to assist you with your excise tax and other taxation needs. Our team of certified tax accountants is well-equipped to clarify any uncertainties you may have concerning Excise Tax in Dubai and the UAE at large. Feel free to reach out to us for further guidance.
