Excise Tax Registration

The United Arab Emirates (UAE) introduced Excise Tax in October 2017 as part of its broader fiscal reform strategy to encourage healthier consumption patterns and generate additional revenue for the government. The excise tax primarily targets products that are considered harmful to public health or the environment, such as tobacco, sugary drinks, and energy drinks. For businesses involved in the production, import, or sale of excise goods, excise tax registration is mandatory.

Tulpar Global Taxation, a leading tax consultancy in the UAE, offers expert assistance to businesses in registering for excise tax and complying with the Federal Tax Authority's (FTA) requirements.

What is Excise Tax Registration?

Excise tax registration is the formal process through which businesses dealing with excise goods register with the Federal Tax Authority (FTA) to comply with UAE tax laws. Any business involved in the production, import, or storage of excise goods must register to legally operate within the UAE’s tax framework.

Excise tax is imposed on specific products at the following rates:

• Tobacco and tobacco products: 100%
• Energy drinks: 100%
• Carbonated drinks: 50%
• Sugary drinks: 50%

Who Needs to Register for Excise Tax?

Businesses that are involved in the following activities must register for excise tax:

• Producers of excise goods: Companies that manufacture or produce goods such as tobacco, energy drinks, or sugary drinks.
• Importers of excise goods: Companies that import excise goods into the UAE for sale or distribution.
• Stockpilers of excise goods: Businesses that store excise goods for sale, including large quantities that are held for future distribution.
• Distributors of excise goods: Businesses involved in the sale and distribution of excise goods.

In essence, any business that handles excise goods in the UAE must register with the FTA to fulfill its excise tax obligations.

Why is Excise Tax Registration Important?

1. Legal Compliance: Excise tax registration is a legal requirement in the UAE for businesses involved in excise goods. Failing to register for excise tax can result in penalties, legal repercussions, and potential restrictions on business operations. The FTA imposes strict compliance measures, and any oversight or delay in registration can significantly impact your business.
2. Transparency and Credibility: Registering for excise tax improves the transparency and credibility of your business. It signals to suppliers, partners, and customers that your company complies with the UAE’s tax regulations, which can enhance trust and foster stronger business relationships.
3. Avoidance of Penalties: The FTA imposes fines and penalties on businesses that fail to register for excise tax on time or provide inaccurate information. By registering with the help of Tulpar Global Taxation, businesses can ensure they avoid unnecessary penalties.

The Excise Tax Registration Process in the UAE

The process of excise tax registration involves multiple steps, which can be complex for businesses unfamiliar with the FTA’s requirements. Tulpar Global Taxation offers a seamless process to help businesses complete their excise tax registration efficiently.

1. Assessing Business Eligibility: Before registration, Tulpar Global evaluates whether your business is required to register for excise tax. This assessment is based on the types of goods you produce, import, store, or distribute. If your business is involved in handling excise goods, registration is mandatory.
2. Preparing Documentation: To register for excise tax, businesses must submit various documents to the FTA, including:

• Trade license
• Business owner details
• Product details (for excise goods)
• Financial records (to verify the volume and nature of excise goods handled)

Tulpar Global assists in gathering and preparing the necessary documentation to ensure that your excise tax registration is accurate and complete.

1. Registration Submission to the FTA: The excise tax registration process is completed online through the FTA portal. Tulpar Global handles the entire submission process, ensuring that all details are accurate and that the registration is processed efficiently. They also track the progress of your registration and liaise with the FTA if any additional information is required.
2. Post-Registration Compliance: Once the business is registered for excise tax, ongoing compliance with the FTA’s regulations is essential. This includes submitting excise tax returns, maintaining proper records of excise goods, and paying the tax collected to the FTA within the specified timeframe. Tulpar Global offers comprehensive post-registration support to help businesses stay compliant.

Responsibilities After Excise Tax Registration

After registering for excise tax, businesses must fulfill several ongoing responsibilities to remain compliant with UAE tax laws:

1. Collecting Excise Tax: Registered businesses must collect excise tax on the sale of excise goods and ensure that the tax is reflected in the price. Tulpar Global helps businesses implement systems for accurately calculating and charging excise tax on all taxable goods.
2. Filing Excise Tax Returns: Excise tax returns must be filed with the FTA regularly, typically on a quarterly basis. Tulpar Global ensures that excise tax returns are filed accurately and on time, preventing any penalties or fines from late or incorrect submissions.
3. Paying Excise Tax: Businesses are required to pay the excise tax they collect to the FTA by the deadline specified in their tax period. Tulpar Global assists in calculating the correct amount of tax due and ensures that payments are made on time to avoid penalties.
4. Maintaining Records: Registered businesses must maintain comprehensive records of all excise goods they produce, import, or sell. This includes maintaining stock inventories, invoices, and sales records. The FTA may request these records for audits or reviews. Tulpar Global helps businesses set up and maintain effective record-keeping systems that meet the FTA’s requirements.

How Tulpar Global Taxation Simplifies Excise Tax Registration

1. Expert Guidance: With a deep understanding of UAE tax laws and FTA regulations, Tulpar Global Taxation provides expert guidance through every step of the excise tax registration process. Their team ensures that businesses meet all requirements, avoid errors, and stay compliant.
2. Tailored Solutions: Every business is unique, and Tulpar Global provides tailored solutions based on the specific needs of your business. Whether you are a small importer or a large distributor, they customize their services to help you manage your excise tax obligations efficiently.
3. End-to-End Support: From initial registration to ongoing compliance, Tulpar Global offers end-to-end support. They handle all aspects of excise tax registration, return filing, and compliance, giving you peace of mind that your business is meeting its legal obligations.
4. Compliance Assurance: With Tulpar Global’s ongoing support, businesses can be confident that they remain compliant with the UAE’s excise tax laws. They keep clients informed about any regulatory updates and provide continuous guidance to ensure compliance with all FTA requirements.

Conclusion

For businesses involved in excise goods, excise tax registration is not only a legal requirement but also an essential step in maintaining transparency and operational efficiency. Tulpar Global Taxation provides expert excise tax registration services, ensuring that businesses comply with the UAE’s tax regulations and avoid penalties. From assessing eligibility to filing tax returns, Tulpar Global offers comprehensive support, allowing businesses to focus on their core operations while staying compliant with excise tax laws.

For reliable and professional excise tax registration and compliance services in the UAE, partnering with Tulpar Global Taxation ensures that your business is always on the right track.

Tulpar Global Taxation is a specialized firm providing comprehensive tax and financial consulting services in the UAE.