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Excise Tax
Excise tax is a form of indirect tax applied on certain products that are declared damaging to the general population or the natural world. In the UAE, excise tax is applied to products such as tobacco products, carbonated beverages, energy drinks and other commodities that may have negative health or environmental impacts. This tax system is structured not only to discourage the consumption of such goods but also to generate government revenue for public welfare initiatives.
At Hisab Taskmaster CAdvisors, we bring clarity and confidence to your excise tax management. Our team of experienced Chartered Accountants has in-depth expertise in excise tax regulations, both in the UAE and India, including their intricate and region-specific variations. We serve as your trusted compliance partners, helping you navigate the complexity of excise tax laws with precision and ease.
Excise tax is an additional tax paid on specific goods at the production, importation, or distribution stage. It is typically included in the final retail price paid by the consumer. In the UAE, excise tax is part of a national strategy to promote healthier lifestyle choices and reduce the consumption of products deemed harmful to public health or the environment.
Current Excise Tax Rates in the UAE:
- 50% on carbonated drinks (fizzy beverages with added sugar or other sweeteners)
- 50% on Sweetened drinks (flavored juices and milk-based drinks)
- 100% on tobacco products (such as cigarettes, cigars, and electronic smoking devices)
- 100% on energy drinks (beverages containing caffeine and other stimulants)
- 100% on liquids used in electronic smoking devices
- 100% on electronic smoking devices
What is Excise Tax?
Who Must Register for Excise Tax in the UAE?
If your business deals with excise goods at any point in the supply chain, you may be legally required to register with the UAE’s Federal Tax Authority (FTA) under Federal Decree-Law No. (7) of 2017. The FTA requires all entities handling excise goods to register, even if the goods are not sold directly to consumers.
You have to register your company for excise tax if it –
- Produces excise goods within the UAE
- Imports excise goods from outside the UAE
- Holds excise goods in large quantities for commercial use
- Operates storage facilities or warehouses that keep excise goods
Our Comprehensive Excise Tax Services
We offer a comprehensive suite of excise tax services designed to to fulfill the requirements of companies in different sectors, which include –
Excise Tax Registration
We help you register your business with the FTA ensuring compliance with excise tax requirements and protecting your business from potential penalties.
De-registration
If your business no longer needs to be registered, we manage the de-registration process to ensure a smooth transition and compliance with FTA regulations.
Product Classification Review
We review your products to determine if they are subject to excise tax and ensure they are classified correctly according to FTA guidelines.
Stock & Duty Advice
We provide clear advice on how excise tax impacts your stock levels and the duties you need to pay based on the products you store.
Ongoing Compliance
We ensure your business remains compliant by managing regular excise tax filings and keeping you informed about any necessary updates or changes.
Tax Agent Services
As authorized tax agents, we handle your FTA communication, represent your business and ensure all paperwork is in order for excise tax matters.
Consultancy on Updates
We keep you updated on changes in excise tax laws so your business can adapt quickly and remain compliant with the latest government regulations.
Handling Excise Disputes and Appeals
In case of disputes with tax authorities, we assist with preparing responses, filing objections and guiding you through the appeals process.
Our Comprehensive Excise Tax Services
We offer a comprehensive suite of excise tax services, UAE designed to to fulfill the requirements of companies in different sectors, which include –
- Excise Tax Registration – We help you register your business with the FTA ensuring compliance with excise tax registration requirements and protecting your business from potential penalties.
- De-registration – If your business no longer needs to be registered, we manage the de-registration process to ensure a smooth transition and compliance with FTA regulations.
- Product Classification Review – We review your products to determine if they are subject to excise tax and ensure they are classified correctly according to FTA guidelines. Stock & Duty Advice – We provide clear advice on how excise tax impacts your stock levels and the duties you need to pay based on the products you store.
- Ongoing Compliance – We ensure your business remains compliant by managing regular excise tax filings and keeping you informed about any necessary updates or changes.
- Tax Agent Services – As authorized tax agents, we handle your FTA communication, represent your business and ensure all paperwork is in order for excise tax matters.
- Consultancy on Updates – We keep you updated on changes in excise tax laws so your business can adapt quickly and remain compliant with the latest government regulations.
- Handling Excise Disputes and Appeals – In case of disputes with tax authorities, we assist with preparing responses, filing objections and guiding you through the appeals process.
- Ensuring accurate tax calculations to avoid overpayment or underpayment.
- Streamlining your supply chain processes to account for excise tax obligations.
- Advising on pricing strategies to balance tax costs and profitability.
- Providing insights into how excise tax impacts your industry and competitors.
With our expert guidance, you can turn excise tax compliance into a strategic advantage to enhance both your efficiency and market competitiveness.
Excise tax can lead to operational challenges and financial risks if not managed properly. Non-compliance can result in heavy fines, reputational damage, and delays in your business operations. At Hisab Taskmaster CAdvisors, we help you manage these risks effectively by –
Impact of Excise Tax on Your Business
Contact Us for Expert Excise Tax Solutions
If your company deals with excise goods in the UAE, it is critical to comply with excise tax requirements. At Hisab Taskmaster CAdvisors, we provide experienced advisory services to ensure that your company complies with excise tax rules while maximizing its tax situation.
Get in touch today to discover more about our excise tax advisory services or to set up a consultation. Let us lead you through the complexity of excise tax and help you achieve long-term commercial success.
Talk To Us!
You’ve got questions, we’ve got answers.
- Office Suite 1202, 12th Floor, Fahidi Heights - AWR, Al Musallah Tower, Bur Dubai, UAE Near Sharaf DG/Al Fahidi metro exit 4
- +971 58 598 0480
- 04 255 6667
- businesswithhisab@taskmastergulf.com
