Excise Tax
Excise Tax Advisory Services in Dubai, UAE
Since the introduction of excise tax in the UAE in 2017, businesses dealing with specific products harmful to human health and the environment have had to pay this government-imposed tax. These products, including tobacco, energy drinks, and carbonated drinks, fall under the excise goods category. IBR GROUP, a leading accounting and bookkeeping firm, offers excise tax advisory services in the UAE to assist businesses in auditing and paying their excise taxes accurately and in compliance with regulations.
Who Should Register for Excise Tax?
Businesses engaged in the following activities must register for tax in the UAE:
- Importing excise goods into the UAE.
- Producing excise goods for consumption within the UAE.
- Stockpiling excise goods in specific cases.
- Overseeing an excise warehouse or designated zone as a warehouse keeper.
Understanding Concepts
Excise tax is an indirect tax applied to goods considered detrimental to health or the environment. It serves a dual purpose: reducing consumption of harmful commodities and generating government revenue for public services. Under the UAE Federal Decree-Law No. 7 of 2017, businesses dealing with excise goods are required to register for excise tax. The deadline for company registration was November 30, 2019, and for stock registration, it was January 15, 2020.
Excise Rates​
The excise tax rates in the UAE are as follows:
- 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 products with added sugar or other sweeteners.
Products Exempted
Some products are exempted , including:
- Ready-to-drink beverages containing at least 75% milk or milk substitutes.
- Baby formula/baby food.
- Beverages for special dietary needs.
- Beverages for medical uses.
Tax Compliance and Penalties
The Federal Tax Authority (FTA) can conduct audits of taxable businesses and impose penalties for non-compliance. Failure to registration within the deadline can result in a penalty of Dh20,000. Additionally, importers cannot clear taxable items through customs without proper registration.
IBR GROUP Excise Tax Advisory Services:
IBR GROUP offers a range of services in Dubai, including tax planning, document verification, tax calculation assessment, and more. Their services help businesses manage excise taxes, ensure accurate tax reports, and navigate tax audits conducted by the FTA. With the support of IBR Group’s experts, businesses can maintain compliance with tax laws, avoid penalties, and optimize their financial strategies.
Excise tax in the UAE is a crucial aspect of financial compliance for businesses dealing with specific goods. IBR Group’s advisory services offer businesses the expertise and guidance needed to navigate this complex tax landscape, ensuring both compliance and financial efficiency. For excise registration and advisory services in the UAE, businesses can rely on IBR Group’s comprehensive solutions and experienced professionals.