ANNOUNCEMENT
The Federal Tax Authority (FTA) has officially announced a waiver of the AED 10,000 penalty for companies that failed to register for Corporate Tax within the original deadline.E

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Excise Tax Registration Services

We help businesses register for excise tax by handling applications and documentation for the Federal Tax Authority (FTA), ensuring compliance with tax filings and payments.

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Overview of Excise Tax

Globalization has opened up opportunities for businesses to expand their operations internationally, resulting in a significant increase in the import and export of goods and services. As a consequence, various types of taxes are imposed on these transactions, including excise tax. This particular tax is levied on certain goods that are considered harmful to human health, such as tobacco and alcohol.

To comply with legal regulations, businesses must undergo excise tax registration. This process is essential for ensuring that they meet all necessary requirements and obligations. 

Main Features of Excise Tax

Targeted on Consumption Goods

It is primarily imposed on goods that are consumed, such as alcohol, tobacco, and certain luxury items.

Specific Goods

Excise tax applies specifically to certain goods that are deemed harmful or undesirable, thus influencing consumer behavior.

Levied at Production or Import

The tax is imposed either during the production phase or at the point of importation, ensuring it is accounted for before reaching consumers.

Impact on Pricing

The excise tax often leads to higher prices for consumers, reflecting the cost of the tax embedded in the retail price.

Regulatory Compliance

Businesses must adhere to specific regulations regarding the reporting and payment of excise tax, ensuring transparency and accountability.

Revenue Generation

Excise tax serves as a significant source of revenue for governments, funding public services and initiatives.

Who Should Register for Excise Tax in Dubai?

Businesses involved with specific goods subject to excise duty are required to register for excise tax in Dubai. This includes producers, importers, stockpilers, and warehouse keepers of excise goods.

Methods of Charging Excise Tax

Excise tax can be applied through the following methods:

  1. Specific Excise Tax
    In this method, the tax is imposed based on quantity, regardless of the price or weight of the goods.

  2. Ad-Valorem Excise Tax
    This method charges tax based on a percentage of the specific product’s value.

Documents Required for Excise Tax Registration in the UAE

  • Trade License
  • Business Activity Information
  • Trade License
  • Declaration
  • Certificate of Incorporation
  • Articles of Association
  • Customs Number issued by the customs department
  • Passports of the manager, owner, and senior management
  • Authorized Signatory Documents
  • Bank Account Details
  • Emirates ID
  • Partnership Agreement (if applicable)

Wise Consultancy’s Role in Excise Tax Registration

Wise Consultancy is a Dubai-based firm that specializes in accounting, taxation, and audit services. Since our inception, we have supported numerous clients worldwide in establishing their businesses. Our team of experts is dedicated to assisting you in obtaining your excise tax certificate, enabling you to effectively manage your business related to excise goods. To embark on your business journey, please reach out to us. We would be delighted to assist you throughout the registration process.

FAQS

What business activities are covered under excise tax registration?

Business activities that fall under excise tax registration include importing, exporting, manufacturing, trading, storing, and transporting excise goods.

How often must a business file excise tax in the UAE?

Any business registered for excise tax is required to file an excise tax return monthly. The filing fee must be settled within 15 days of submission.

What steps should a business take when required to pay excise tax?

When a business is required to pay excise tax, it must first register with the Federal Tax Authority (FTA) and submit its monthly excise tax return. Payment should be made on the same date as the submission.

What are the methods of charging excise taxes?

Excise taxes can be charged using the following methods: Specific Excise Tax: Charged based on quantity, regardless of price or weight. Ad-Valorem Excise Tax: Charged as a percentage of the product's value.

What types of goods are subject to excise tax?

Excise tax typically applies to goods that are harmful to health or the environment, such as tobacco, alcohol, and sugary beverages.

Who is responsible for collecting excise tax?

Businesses are responsible for collecting excise tax on behalf of the tax authority, ensuring compliance and timely payment.

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