Essential Steps for Excise Tax Registration in the UAE

Excise tax registration in the UAE is an essential process for businesses involved in the production, import, or stockpiling of specific goods that are considered unsafe to health or the ecosystem. The UAE excise tax went into effect on October 1, 2017, and aims to reduce the consumption of these goods while also raising income for public services. The following guide describes the necessary actions and requirements for excise tax registration to ensure compliance with UAE regulations. 

Understanding UAE Excise Tax

It is important to know about the excise tax before beginning the registration process. UAE excise tax is a kind of indirect tax levied on certain goods which are considered harmful to the environment or public health. Usually, these products consist of –

• Tobacco and tobacco products
• Carbonated drinks
• Energy drinks
• Sweetened drinks
• Electronic smoking devices and their liquids

The product category determines the tax rate. The fundamental goal of the excise tax is to produce revenue for the government while preventing the use of hazardous materials.

Who Needs to Register for Excise Tax in the UAE?

Any business involved in the import, manufacture, or supply of excise goods within the UAE is required to register for excise tax. This includes –

• Manufacturers of excise goods
• Importers of excise goods
• Wholesalers and retailers involved in selling these goods.
• Stockpilers holding excise goods in designated zones.
• Customs agents handling excise goods

It is important to note that businesses cannot conduct any transactions involving excise goods until they are registered for excise tax in the UAE

Documents Required from Business Owners

To complete the excise tax registration, business owners must prepare several key documents –

• Passport Copy – A clear copy of the owner’s passport.
• Emirates ID – A valid Emirates ID of the owner or authorized signatory.
• Trade License – A copy of the business’s trade license issued by relevant authorities.
• Memorandum of Association – Highlights the goals and structure of your company.
• Articles of Association – Governs the internal management and rules of your business.
• Customs Registration – Authorizes your business to handle customs transactions for excise goods.

These documents are required to confirm registration and business validity throughout the registration procedure.

Deadlines for Registration

The deadline for excise tax registration depends on the type of the business and its activities. Generally, businesses engaged in the import or manufacture of excise goods must register within 30 days of commencing operations.The registration deadlines for retailers and wholesalers may range, depending upon the particular conditions.

Step-by-Step Excise Tax Registration Process

1. Determine if You Need to Register for Excise Tax

Begin by carefully assessing whether your business falls under the category of those required to register for excise tax. This determination is based on the specific types of excise goods you import, manufacture, or supply. If your business handles any of the excise goods listed in the UAE’s excise tax regulations, you are likely subject to registration requirements. 

2. Get a Tax Registration Number (TRN)

If your business is already registered for other taxes in the UAE, you can use your existing Tax Registration Number (TRN). However, if you do not have a TRN, you will need to obtain a new one from the Federal Tax Authority (FTA) portal. This is a special identifying number that will be employed to track your business’s tax activities. 

3. Complete the Excise Tax Registration Form

Next, fill out the excise tax registration form provided by the FTA. Make sure that every piece of information you supply is true and relevant. Any errors or false information could lead to delays or complications in the registration process, so double-check your entries.

4. Upload Supporting Documents

Prepare and submit the required supporting documents, including your trade license, Emirates ID, and information about your business premises. It will be easier to submit your documents if they are arranged clearly and easily accessible. This will further assist the FTA review them more quickly.

5. Submit Your Application

Submit your completed registration form and supporting documents to the FTA either online or in person. You may have the option to submit your application online through the FTA’s portal, or you may need to visit an FTA office in person, depending on the specific requirements.

6. Complete Mandatory Training

As part of the registration process, the FTA may require you to complete mandatory training on excise tax compliance. This training is essential, as it will provide you with crucial information regarding excise tax rules and regulations and help you understand your obligations as a registered taxpayer.

7. Compliance with Excise Tax Obligations

After registration, you must comply with all UAE excise tax obligations, such as paying taxes, filing returns, and maintaining proper records. This includes filing periodic returns to report your excise tax liability, paying the required taxes on time, and keeping accurate records of your excise tax activities. It is essential to maintain accurate records and take immediate action as noncompliance with these requirements may lead to penalties and interest charges.

Need Assistance with Excise Tax Registration?

If you’re finding it challenging to navigate the excise tax registration process or have questions about your compliance obligations, Taskmaster Gulf is here to help. Our team of tax professionals provides expert advice and assistance catered to your company’s requirements. We can help you comprehend the specifications, get the required paperwork ready, and make sure you successfully fulfill all deadlines.

By partnering with Taskmaster Gulf, you can rest assured that your excise tax obligations will be handled efficiently and effectively.

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