Excise Tax Registration

Business trading is inevitable and is growing with the world growing in technology. One such type of tax involving the import and export of goods is the Excise Tax. It is an indirect tax levied exclusively on the import of limited edition goods that are harmful to human health. An excise tax registration has to be executed according to the law of the government.

As different rates are applicable for different ranges of products, business activities should be conducted on a legal basis as per Excise tax. All special purpose goods including Tobacco products, carbonated soft drinks are subject to an Excise tax.

Excise Tax Exclusions in the UAE

Unflavored Aerated water excluded from Carbonated Drinks Category
Under the Sweetened Drink category, the following are excluded
a. Baby food
b. Drinks with 75% milk or substitutes of milk
c. Special dietary or medical beverages
Drinks with alcohol

Rates of Excise Tax in the UAE

50 % on carbonated drinks
50 % on any sweetening products
100 % on electronic smoking devices
100 % on tobacco products
100 %on liquids used in such devices and tools
100 % on energy drinks

Who can register for Excise Tax in the UAE?

The following groups are essential to do Excise Tax registration in the UAE

Importers of Excise goods
Producers of Excise goods
Stockpilers of Excise goods
Warehouse keepers of Excise goods

As there is no particular registration threshold for excise tax, any corporation concerned with the above-listed categories needs to register an account for excise tax

Important documents necessary for Excise Tax Registration in the UAE

The documents required for excise tax registration are:

Certificate of Incorporation
Declaration
Trade license
Articles of Association
Bank account details
The custom number issued by the custom department
Emirates ID
Authorized signatory documents
Passport of manager, owner, and senior management
Partnership agreement
Business activity-related information

Standard Auditing is a company in Dubai, UAE helping businesses to handle accounting, auditing, and taxation processes. Having dealt with multiple clients across the world, Standard Auditing gives a hand in Excise tax registration, returns, or de-registration for businesses.

To get assistance with Excise Tax, do contact Standard Auditing