Tax in UAE

The UAE Federal Decree-Law No 7 of the 2017 excise tax stipulates and mandates that any business engaged in importing excise goods into the UAE, producing excise goods which are sold in the UAE, storing of certain goods in the UAE, and overseeing an excise warehouse must register for the VAT. While the federal government and the FTA will assist businesses in registering for this Tax in UAE, it is the primary responsibility of businesses to register and to make sure that they are fully compliant with the VAT laws, rules, and regulations.

Businesses choosing not to register should remember that the FTA has the power and the authority to audit and penalize those companies not complying. The FTA has streamlined the registration process by allowing businesses to register through the e-services section of the FTA website. Businesses must register and create an account in order to facilitate the registration process. Once they register, businesses will receive an email which they must click on to activate their account, and register their business.

Upon logging to their services account, businesses will see a button inviting them to apply to register for the excise tax. They may also see another button inviting them to apply for the VAT. The business manager must click on the register for excise tax button to start the process. Business managers should register the person operating or owning the business, and not the business itself. The person can be an individual, a legal person, or another form of entity (a charity or partnership, for example). The registration process applies to all business activities the registered person engages in. The business manager must also specify if the person holds a trade license.

Excise Tax FAQ

When will the excise tax go into effect in the UAE?
The excise Tax in UAE will go into effect on October 1, 2017.

When will affected businesses be able to register to file tax returns and pay excise taxes?
Required businesses must register for the tax online. Businesses will be able to register effective September 1, 2017.

Which goods will be subject to excise tax in the UAE?
Carbonated drinks 50%
Energy drinks 100%
Tobacco 100%

What value will excise tax apply to?
The excise Tax in UAE will be applied on the retail selling price of the good at the rate applicable to the excise good in question.

Who will be required to register for the excise tax?
Producers of excise goods
Importers of excise goods
Stockpilers of excise goods
Warehouse keepers responsible for storing excise goods