Excise tax is a form of indirect tax levied on specific goods called “excise goods” which are typically harmful to human health or the environment. The Excise tax was introduced across the UAE in 2017.
The purpose of levying excise tax is to reduce the consumption of unhealthy and harmful commodities as well as to raise revenues for the government that can be spent on beneficial public services. Ultimately, consumers need to pay more for goods that are harmful to human health or the environment.
Under the UAE Federal Decree-Law No. 7 of 2017 on Excise Tax, it is the responsibility of a business to register for excise tax. The deadline for registration for companies was November 30, 2019. The deadline for registration of stocks is January 15, 2020.
It is advisable that a Taxable person engaged in activities relating to excise goods such as tobacco products, carbonated drinks, and energy drinks should empower an audit firm to get professional advice on Excise Tax issues.
INOUTAX is one of the leading accounting, tax, and bookkeeping services providers, who provide excellent excise tax advisory services in UAE to its clients and ensures that the clients comply with the tax law.
- Who should Register for Excise Tax?
The companies that are engaged in the following areas are to Register for Excise Tax:
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
A warehouse keeper who is responsible for overseeing an excise warehouse or designated zone
INOUTAX professionals review Excise Tax records, returns & reconciliation and ensure timely submission of Excise Tax returns for Excise Tax Audit conducted by the FTA. INOUTAX experts can help you maintain your tax records as per the tax law and comply with to avoid penalties and save your money and energy. Our tax specialists support and guide businesses with excise tax registration and systematic excise tax advisory services in the UAE on the compliance of tax law. We can lead you throughout the tax procedures and help your business to grow by providing better strategies.