Excise Tax

Which products are subject to excise tax in the UAE?

• Carbonated drinks include any aerated beverage except for unflavored aerated water.
• Energy drinks include any beverages which are marketed, or sold as an energy drink.
• Tobacco and tobacco products.
• Electronic smoking devices and tools.
• Liquids used in such devices and tools.
• Sweetened drinks.

Kaiaan Accounting can assist in excise tax consultancy in the UAE.

• Our experts have a deep understanding of excise tax laws and regulations in the UAE, ensuring accurate and compliant tax calculations and reporting.
• We provide personalized consultancy services, analyzing your business structure and operations to develop tax strategies that optimize exemptions and minimize liabilities.
• Our team keeps track of the latest updates in excise tax regulations, ensuring your business remains compliant and avoids penalties or fines.
• In case of tax audits, we can guide you through the process, helping you gather the required documentation and address any issues raised by the authorities.
• We aim to save you time and money by streamlining your excise tax processes, allowing you to focus on your core business while we handle complex tax matters.

The Excise Tax Health Check is a comprehensive review of an organization's excise tax compliance and processes in the UAE. It involves an in-depth analysis of the company's excise tax practices, including record-keeping, calculations, reporting, and adherence to all relevant regulations set forth by the Federal Tax Authority (FTA). The objective is to identify any potential errors, risks, or areas for improvement in how a business manages its excise tax obligations.

Importance of Excise Tax Health Check in the UAE:

The importance of an Excise Tax Health Check lies in its ability to identify any potential issues or risks related to excise tax compliance. By conducting this health check, companies can proactively assess their level of compliance, uncover any non-compliance areas, and take corrective actions to mitigate future risks. Here are some key reasons why the Excise Tax Health Check is important:

Compliance Assurance

Conducting regular health checks ensures that a business complies with the complex and evolving excise tax laws in the UAE, reducing the risk of non-compliance and ensuring that your company meets all legal requirements set by FTA.

Financial Accuracy

The health check verifies the accuracy of tax calculations, filings, and reporting, helping to avoid financial discrepancies and ensuring the right amount of tax is remitted.

Risk Mitigation

Identifying and addressing non-compliance or inaccuracies early through a health check mitigates potential risks of penalties, fines, or legal issues that may arise due to improper tax procedures.

Cost Savings

The health check can help identify potential overpayments or underpayments of excise tax, by ensuring precise tax calculations and filings, businesses can save costs associated with potential penalties, fines, or corrections needed due to non-compliance.

Regular excise tax health checks are a proactive approach to staying compliant, financially accurate, and operationally efficient in managing excise tax obligations, ultimately contributing to the long-term success of a business in the UAE.

What are the activities involved in Excise Tax health checks in the UAE?

The health check begins with a thorough examination of the organization's excise tax policies and procedures. This includes assessing the adequacy and effectiveness of internal controls, documentation, and processes related to excise tax compliance.

The health check involves reviewing the company's excise tax calculations, payments, and filings to ensure they are accurate and in accordance with the guidelines set by the Federal Tax Authority (FTA).

Scrutinize previous tax returns for accuracy and completeness.

The health check assesses the adequacy and accuracy of the organization's record-keeping practices related to excise tax. This includes reviewing records such as invoices, receipts, import/export documents, and other relevant documentation to ensure they meet the FTA's record-keeping requirements.

Identify potential non-compliance risks, this may include identifying errors in calculations, inadequate documentation, incorrect classification of goods, or other issues that could result in penalties or fines.

A thorough health check helps rectify non-compliance, enhance tax accuracy, and ensure adherence to UAE tax regulations.

Kaiaan has a team of tax professionals with extensive knowledge and experience in UAE's Excise Tax regulations. Kaiaan will conduct a thorough review of your Excise Tax calculations, payments, filings, and records to ensure compliance with FTA guidelines, identifying any potential areas of non-compliance. We will help you identify and mitigate potential risks associated with Excise Tax, such as calculation errors, inadequate documentation, or incorrect classification of goods.

By leveraging Kaiaan's expertise and services, you can streamline your Excise Tax health check process, reduce the risk of non-compliance, and ensure efficient tax management in the UAE.

What is refundable tax?

In some instances, it happens that the FTA refunds the excise tax which has previously been paid on excise goods.

Therefore, the taxable person can deduct the value of the tax from the total excise tax payable to the FTA on his excise tax return in the next month.

Kaiaan can assist you in the process of claiming an Excise Tax refund in the UAE.

Kaiaan can assess your eligibility for an Excise Tax refund based on the specific criteria set by the Federal Tax Authority (FTA). We will review your business activities, excise tax payments, and any other relevant factors to determine if you meet the requirements for a refund.

Kaiaan can guide you on the documentation required to support your refund claim. This may include purchase invoices, import documents, sales invoices, and other relevant records. We can help ensure that all necessary documents are organized and prepared correctly.

Kaiaan can assist you in preparing and submitting the Excise Tax refund application to the FTA. We will ensure that all the required information is included, and that the application adheres to the FTA guidelines. This will help expedite the process and increase the chances of a successful refund claim.

Kaiaan can communicate with the FTA on your behalf to follow up on the status of your refund claim. By maintaining regular contact with the tax authorities, we can keep you informed about any updates or additional actions required during the refund process.

Who is required to register for Excise Tax?

Excise Tax is the responsibility of any person engaged in:

• The import of excise goods into the UAE.
• The production of excise goods where they are released for consumption in the UAE
• The stockpiling of excise goods in the UAE in certain cases.
• The release of excise goods from a designated zone.

Activities requiring Excise Tax registration in the UAE.

Any business which releases excise goods from a designated zone, imports, produces, or stockpiles excise goods in UAE, should register for Excise Tax.

Products to be registered as excise goods.

Carbonated drinks include any aerated beverage except for unflavored aerated water

Energy drinks include any beverages which are marketed, or sold as an energy drink, and containing stimulant substances that provide mental and physical stimulation.

Tobacco and tobacco products

Electronic smoking devices and tools

Liquids used in such devices and tools

Sweetened drinks.

Rate of excise tax

According to Cabinet Decision No. 52 of 2019 on Excise Goods, the rate of the excise tax is as follows:

• A. 50% on carbonated drinks.
• B. 50% on sweetened drinks.
• C. 50% on any product with added sugar or other sweeteners.
• D. 100% on tobacco products.
• E. 100% on electronic smoking devices and tools.
• F. 100% on Liquids used in electronic smoking devices.

To register for Excise Tax in the UAE, you need to follow these steps:

• 1) Determine if your business deals with excise tax applicable goods.
• 2) Create an account on the FTA e-Services Portal.
• 3) Fill and submit the excise tax registration form accurately.
• 4) Receive your unique Tax Registration Number (TRN) upon approval.
• 5) Prepare for excise tax compliance, including proper recordkeeping and tax return submissions.

The documents required for Excise Tax Registration in the UAE are as follows:

1. Trade license copy: A copy of the valid trade license of the applicant's business.
2. Emirates ID of applicant: A copy of the applicant's Emirates ID.
3. Passport copy: A copy of the applicant's passport.
4. Bank account details: Details of the applicant's bank account, including the account number and the name of the bank.
5. Customs authority registration: A copy of the registration certificate from the Customs authority.
6. Details of shareholders: Details of the shareholders of the business, including their names, passport copies, and Emirates ID copies.
7. Contact details: Contact information of the applicant, including phone number, email address, and physical address.
8. Product information: Details of the products that are subject to excise tax, including their names and descriptions.
9. Supporting documents: Any additional supporting documents requested by the Federal Tax Authority (FTA) for the registration process.

By engaging Kaiaan as your expert taxing company, you can ensure a smooth and hassle-free Excise Tax registration process, allowing you to focus on running your business while we handle the tax-related complexities.

Kaiaan, as an expert taxing company, can assist you with submitting your Excise Tax registration by providing the following services:

Our team will evaluate your business activities and determine if you are required to register for Excise Tax based on the nature of your goods or services.

We will assist you gather all the necessary documents and information required for Excise Tax registration, such as business license, company registration details, and relevant financial records.

We will guide you through the registration process, including filling out the registration forms accurately and submitting them to the appropriate government authorities.

Our experts will review your business processes and transactions to ensure that you are in compliance with Excise Tax regulations. We will provide guidance on any adjustments or changes that need to be made to ensure compliance.

We will assist you in setting up a proper record-keeping system to maintain relevant documents and records related to Excise Tax. This will help you stay organized and prepared for tax audits or inquiries from government authorities.

Our team will be available to answer any questions or provide assistance related to Excise Tax registration and compliance throughout the year. We will keep you informed about any changes in the tax laws that may impact your business.

Thoroughly review your excise tax records and transactions to identify any inaccuracies, errors, or missing information. Complete the Voluntary Disclosure Form provided by the Federal Tax Authority (FTA) with accurate and corrected information. Submit the completed Voluntary Disclosure Form electronically through the FTA's online portal, ensuring all necessary supporting documents are attached. If the disclosure results in additional excise tax liabilities, calculate the tax due and ensure timely payment to the FTA.

The FTA will acknowledge the voluntary disclosure submission and may conduct a review or audit if necessary. They will assess any additional tax liabilities, penalties, or interest as applicable. After completing the voluntary disclosure process, ensure ongoing compliance with excise tax regulations to prevent future errors and issues. Voluntary disclosure demonstrates a commitment to compliance and may result in reduced penalties compared to if the errors were identified by tax authorities.

Kaiaan offers comprehensive support for initiating a Voluntary Disclosure concerning Excise Tax in UAE. We begin by assessing potential non-compliance through a thorough review of your excise tax records and transactions. If a disclosure is deemed necessary, we guide you through the process, explaining the steps, required forms, and supporting documentation. Our experts calculate the accurate excise tax amount and associated penalties in line with FTA guidelines. We then meticulously prepare and submit the Voluntary Disclosure form on your behalf, ensuring compliance and optimizing the likelihood of a favorable outcome. Throughout the process, we act as a liaison with the FTA, facilitating effective communication and resolution.

The steps for warehouse registration in excise tax:

1. Check eligibility of your warehouse for excise tax registration based on stored goods.
2. Gather required documents such as identification, ownership proof, trade license.
3. Create an account on FTA e-Services Portal.
4. Fill and submit the excise tax warehouse registration form accurately.
5. Review and ensure accuracy before submitting the form.
6. Receive confirmation of registration from FTA.
7. Maintain compliance with excise tax regulations by following FTA guidelines for warehousing and handling goods.

Registering your warehouse for excise tax in the UAE is vital for tax law compliance and proper management of excisable goods. Kaiaan offers expert assistance by guiding you through the registration process and ensuring all necessary documents are accurately prepared and submitted. Kaiaan's experts can navigate the regulatory framework seamlessly, ensuring your warehouse meets all compliance requirements for excise tax and allowing smooth operations within the UAE.

How to Register as a Warehouse Keeper?

A warehouse keeper refers to an individual or entity responsible for the custody and management of goods within a designated warehouse facility. A person is not allowed to function as a warehouse keeper before registering with the FTA. They are required to comply with FTA regulations, maintain accurate records, and fulfill any reporting or auditing obligations pertaining to the stored goods. The warehouse keeper plays a crucial role in ensuring smooth operations and compliance with tax laws in the UAE.

Required Documents and Forms For the warehouse keeper registration:

• 1) Valid Trade License/Business License.
• 2) Passport/Emirates ID of the authorized signatory.
• 3) Proof of authorization for the authorized signatory.
• 4) Declaration on the entity's printed letterhead, signed and stamped by the authorized signatory, stating the entity’s activity in relation to goods subject to Excise Tax, in addition to the activity type (production, import, stockpiling) and the date on which the activity has started.

Kaiaan is the ideal choice

Kaiaan comes to hiring a tax agency for warehouse registration in the UAE. With our extensive knowledge and expertise in taxation laws and regulations, we can streamline the entire process for you. ensures a smooth and accurate registration process. Our dedicated team provides personalized assistance, streamlining the process and ensuring compliance with all legal requirements, making them the optimal choice for a seamless warehouse registration experience.

Which products are subject to excise tax in the UAE?

• Carbonated drinks include any aerated beverage except for unflavored aerated water.
• Energy drinks include any beverages which are marketed, or sold as an energy drink.
• Tobacco and tobacco products.
• Electronic smoking devices and tools.
• Liquids used in such devices and tools.
• Sweetened drinks.

What do you mean by Excise Tax Deregistration?

Excise Tax Deregistration refers to the process of removing a business or an individual from the list of entities liable for paying certain excise taxes. Excise taxes are levied on specific goods, services, or activities, such as alcohol, tobacco, fuel, transportation, or luxury items. Deregistration occurs when the business or individual no longer meets the criteria or engages in activities subject to excise taxes, thereby removing their obligation to pay these taxes. This could be due to various reasons, including business closure, change in operations, or no longer exceeding the excise tax thresholds. A registered person can apply to the tax authority to discontinue the excise tax registration if he is no longer liable for excise tax as per the provisions of the law. This process is called Deregistration.

To de-register for Excise Tax in the UAE, you can follow these steps:

• 1) Log in to the e-services portal of the Federal Tax Authority (FTA) using your registered username and password.
• 2) Once logged in, go to the "VAT & Excise Tax" tab, and select "Excise Tax."
• 3) Under the "Excise Tax" section, find and click on the "Excise De-registration" option.
• 4) Provide the necessary information for de-registration, including the reason for de-registration and the effective date of the de-registration.
• 5) Submit the de-registration request.
• 6) The FTA will review the request and may request additional information or clarification if needed.
• 7) If the de-registration request is approved, the FTA will deactivate your Excise Tax registration.
• 8) You will receive a confirmation notification from the FTA, indicating successful de-registration.

Kaiaan Accounting can assist you with the excise tax de-registration process in the UAE by providing professional guidance and support throughout. We will help you understand the necessary steps, documentation, and compliance obligations involved in the de-registration process. We will assist you in preparing the de-registration application and gathering all the required supporting documents.

By engaging Kaiaan Accounting, you can benefit from our expertise and experience in tax matters, making the excise tax de-registration process more efficient and hassle-free.