The excise tax was introduced in 2017 in the UAE. Every company dealing with certain products that are considered harmful to the environment and human health has to pay a tax to the government of UAE. Any company manufacturing or supplying products listed in the excise goods category, such as tobacco, carbonated drinks, and energy drinks, is liable to pay the excise tax. Keeping records and maintaining excise tax is important for all businesses. Hence, it is advisable to seek help from a reputed organisation in UAE that has enough knowledge and experience with excise tax advisory in Dubai.
By availing of proper tax consulting services, you can easily ensure that you are adhering to the laws and regulations of the country. At VAT Accounting, we ensure that the tax audit report is accurate and submitted to the authority on time.
Excise Tax Advisory Services in Dubai
As mentioned earlier, the excise tax is levied on “excise goods” that are harmful to humans and the environment. It is a form of indirect tax and is levied with the purpose of reducing the consumption of such harmful substances and products. In addition, excise tax increases the revenue for the government that can be spent on public welfare. Hence, all businesses needed to register for excise tax under the UAE Federal Decree-Law No 7 of 2017 on Excise Tax.
Any taxable person or entity engaged in services related to excise goods should be liable to hire a tax consultant in UAE to get professional advice on Excise Tax issues.
VAT Accounting is one of the leading excise tax consultants in Dubai, providing excise tax advisory services throughout the United Arab Emirates with plenty of clients served to date. We ensure that each of our clients complies with the country’s tax laws.
What are the Rates of Excise Tax in the UAE?
Products | Excise Tax (Percentage) |
Products with sweeteners or sugar | 50% |
Liquids used in devices and tools | 100 |
Liquids used in electronics smoking devices | 100 |
Energy drinks | 100 |
Tobacco products | 100 |
Carbonated drinks | 50 |
What are Records to be Maintained as per Excise Tax Law in Dubai?
A tax-registered person must maintain the following records for at least 1 year period before Excise Tax implementation –
- Excise Account in the event of loss or destruction.
- Proof of excise goods sold beyond the United Arab Emirates.
- Breakdown of excise goods removed from the authorised area.
- Breakdown of the excise goods that the taxable entity produced.
- Details on the average monthly sales of each excise good are stated.
- Paperwork for every excise good that is produced, imported, and stored.
- A detailed statement of the excise goods that the taxable person produces.
- Statement detailing the taxable person’s average monthly inventory holdings.
- Supporting documents for excise items exported from the United Arab Emirates.
- Information on the businesses and merchants to whom the taxable person sells excise goods.
- A breakdown of the excise items that the taxable person exported and sold outside of the UAE.
- Proof of tax withheld from taxes paid and filed for excise items sold outside of the United Arab Emirates.
- Tax records pertaining to excise items that are manufactured or bought for stockpiling excise commodities.
- A statement outlining the specifics of the excise goods the taxable person imported from outside the United Arab Emirates.
- Tax record pertaining to the tax owed on excise items imported or produced in the United Arab Emirates by the taxable person.
- Condition of the excise items, broken out item by item and considering quantity and value, that is physically held by the taxable entity.
- Items specific to the excise products that the taxable person imported and items specific to the excise goods that the taxable person sold locally.
Why Opt for VAT Accounting for Excise Tax Advisory Services in UAE?
VAT Accounting offers all excise tax advisory services, which include – tax planning, document verifications, tax assessment, calculation, etc. Here are a few services that we offer –
- Training to the staff
- Performing stock count
- Verification of all documents
- Excise tax planning and advice
- Excise tax compliance services
- Tax calculation and assessment
- Excise tax registration support services
- Ensure accuracy in tax reports for excise tax audit
Our tax professionals review Excise tax records, returns, and reconciliation and ensure timely submission of your excise tax return. We help you maintain your tax record in such a way that it complies with the law and avoids penalties. We also guide you throughout the tax procedures and help your business to grow by providing more effective strategies.
To avail of excise tax advisory services in UAE, get in touch with us.