A Comprehensive Guide on Excise Tax Registration in UAE

If you're doing business in the United Arab Emirates (UAE) and are involved in the production, import, or sale of certain goods, you may be required to register for excise tax. Excise tax is levied on products harmful to health or the environment, including Tobacco and Tobacco Products, Energy Drinks, Carbonated Beverages, Sweetened Drinks (with added sugar or sweeteners), and Electronic Smoking Devices and their liquids.

Taxes are a necessary part of any business and understanding the process of registering Excise Tax in UAE is essential for any foreign investor. The UAE is known for having one of the most favourable tax environments in the world, and this means that investors can take advantage of various incentives such as zero corporate taxes. However, it is important to understand the process of registering excise tax in order to benefit from these incentives.

The purpose of this article is to explain how to complete this registration process in the UAE. This brief guide will take you through all the necessary steps needed to register your business for Excise Tax.

What is Excise Tax? 

Excise taxes are taxes placed on specific goods or services in order to generate revenue for the government. This type of tax is different from other types of taxation, such as income and sales taxes, because excise tax is only applied to certain products or activities that are deemed “luxuries” by the government. It is also distinct from customs duties, which are imposed on imported goods.

The goal of an excise tax is to raise money for public funds and discourage people from buying luxury products or participating in particular activities. The most common examples of these taxes include fuel excise taxes, tobacco excise taxes, alcohol excise taxes and sin tax on gambling activities. Excise tax rates can vary significantly depending on the product being taxed; for example, gasoline may be subject to a much higher rate than beer or wine.

Here are the steps for registering for excise tax in the UAE: 

Step 1: Determine if you need to register for excise tax

The first step is to determine if your business is required to register for excise tax. You may be required to register if you are involved in the production, import, or sale of certain goods, as listed on the website of the Federal Tax Authority (FTA) of the UAE.

Step 2: Obtain a tax registration number (TRN)

Before you can register for excise tax, you must first obtain a tax registration number (TRN) from the FTA. You can apply for a TRN online through the FTA's e-Services portal.

Step 3: Complete the excise tax registration form

Once you have your TRN, you can begin the excise tax registration process by completing the excise tax registration form. You can access this form through the FTA's e-Services portal.

Step 4: Provide supporting documents

Along with the registration form, you will be required to provide certain supporting documents, such as your trade license, proof of address, and any other documentation related to your business activities.

Step 5: Submit your registration form and supporting documents

Once you have completed the registration form and gathered all the required supporting documents, you can submit your application through the FTA's e-Services portal. The FTA will review your application and notify you of the status of your registration.

Step 6: Complete the mandatory training

Upon registration approval, you must immediately begin complying with all excise tax obligations, including submitting tax returns and payment. The FTA provides various non-mandatory resources to help you understand your compliance duties.This training course is designed to ensure that you understand your obligations and responsibilities under the excise tax regime.

Step 7: Start complying with excise tax obligations

Once you have completed the training course, you can begin complying with your excise tax obligations, such as submitting tax returns and paying the tax due.

In conclusion, Registering for Excise Tax in UAE  is a relatively straightforward process, but it is important to ensure that you understand your obligations and comply with the relevant regulations. By following these steps and seeking guidance from the FTA wherever necessary, you can ensure that your business remains compliant and avoids any penalties or fines. If you have any more doubts regarding Excise Tax, never hesitate to contact Reyson Badger .