Excise

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Excise

  • Excise Tax is an indirect tax imposed by the UAE government on goods considered harmful to human health or the environment. The primary purpose of implementing Excise Tax is to reduce the consumption of such goods while generating government revenue for public spending.
  • Excise Tax was initially introduced in the UAE on 1st October 2017 through the Excise Tax Federal Decree-Law No. (7) of 2017. Subsequently, additional products were included under Excise Tax with effect from 1st December 2019 via Cabinet Decision No. 52 of 2019. All taxable entities must register for Excise Tax through the Federal Tax Authority’s (FTA) online portal.

Goods Subject to UAE Excise Tax

Excise Tax in UAE is a tax on certain goods that are considered harmful to health or the environment. Here’s a quick look at the current rates:

  • 50% on carbonated drinks
  • 100% on tobacco products
  • 100% on energy drinks
  • 100% on liquids used in electronic smoking devices
  • 100% on electronic smoking devices
  • 50% on products with added sugar or sweeteners

What Businesses Need to Do

If your business is involved in any of the following activities, you need to register for Excise Tax:

  • Importing excise goods
  • Producing excise goods
  • Releasing goods from an excise tax zone
  • Stockpiling excise goods (in certain cases)
  • Warehousing excise goods (in certain cases)

The Federal Decree-Law No. 7 of 2017 on Excise Tax outlines these requirements, ensuring that businesses follow the regulations.

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How we add Value

At KloVr, we offer a range of services to make managing Excise Tax as straightforward as possible:

  • Excise Tax Registration : We handle your registration process to ensure you’re compliant from the start.
  • De-registration : Need to end your registration? We manage the de-registration process smoothly.
  • Product Classification Review : We quickly review your products to determine the correct tax classification.
  • Stock & Duty Advice : We guide you on counting stock, calculating duties, and understanding stockpiling requirements.
  • Ongoing Compliance : We assist with filing Excise Duty returns and ensure ongoing compliance.
  • Tax Agent Services : We act as your tax agent, handling all Excise Tax-related communications and submissions.
  • Consultancy on Updates : We keep you informed about the latest amendments and updates from the Federal Tax Authority (FTA).