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Excise Tax Services
Understanding the requirements for excise registration uae is essential for businesses involved with products subject to excise tax. The UAE introduced excise tax to reduce the consumption of harmful goods and promote healthier choices. Completing excise registration uae ensures your business remains fully compliant with Federal Tax Authority (FTA) regulations and avoids legal or financial risks.
What Is Excise Tax in the UAE?
Excise tax is imposed on goods that negatively affect public health or the environment. These include:
- Carbonated drinks
- Energy drinks
- Sweetened beverages
- Tobacco products
- E-cigarettes, vapes & e-liquids
The UAE introduced excise tax in 2017 and expanded it in 2019 to include additional harmful products. This tax promotes responsible consumption and contributes to public health investments.
Why You Need Excise Tax Registration
Businesses must complete UAE excise tax registration if they import, produce, manufacture, store, or release excise goods.
Proper registration helps by:
- Ensuring full compliance with FTA regulations
- preventing heavy fines or confiscation of goods
- Allowing businesses to legally handle excise products
- Ensuring accurate tax filing and reporting
- Avoiding operational disruptions
Professional firms like Professionally Management Consultancies EST. help businesses with documentation, product classification, and ongoing excise compliance.
Step-by-Step: Excise Registration Process
- Prepare required documents: trade license, Emirates ID/passport, warehouse info, product details
- Create an FTA online account
- Submit the UAE excise tax registration application
- Receive FTA approval
- Start filing monthly excise tax returns
Frequently Asked Questions
- How do I know if my business needs excise registration UAE?
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If you import, manufacture, distribute, or store excise goods such as vapes, tobacco, sweetened drinks, or energy drinks, FTA registration is mandatory before operating.
- What documents are required for UAE excise tax registration?
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You will need your trade license, Emirates ID/passport copies, product information, warehouse location, and financial details. Additional documents may be required depending on your activity.
- What are the excise tax rates in the UAE?
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The rates are 100% for tobacco, energy drinks, vapes, and e-liquids, and 50% for carbonated and sweetened drinks. Your tax amount depends on product quantity and value.
- Can I operate before completing excise registration?
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No. Businesses must complete FTA registration before handling excise goods. Operating without registration may lead to severe fines and business restrictions.
- What are the penalties for non-compliance?
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Penalties include heavy fines, confiscation of goods, additional taxes for incorrect filings, and potential licensing issues. Ongoing non-compliance can result in strict FTA actions.
- Do I need a consultant for excise tax registration?
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Not mandatory, but highly recommended. Experts help avoid errors, speed up approval, and ensure ongoing compliance with FTA regulations.
