Scope of Excise Tax
The UAE excise tax covers a range of goods, including tobacco products, carbonated drinks, energy drinks, and electronic smoking devices and liquids. The list of taxable goods can be updated from time to time by the UAE government.
The tax rates for excise goods vary, as follows:
Tobacco products: 100%
Carbonated drinks: 50%
Energy drinks: 100%
Electronic smoking devices: 100%
Liquids used in electronic smoking devices: 100%
Registration and Compliance
Businesses involved in the production, import, storage, or distribution of excise goods in the UAE must register for excise tax with the Federal Tax Authority (FTA). Registered businesses are required to file excise tax returns and pay the tax due on a monthly basis.
Record-keeping and Auditing
Registered businesses must maintain accurate records of all excise goods transactions and store them for at least five years. Real Time Auditors and Accountants can assist with the maintenance of these records and ensure they are compliant with the FTA requirements. Moreover, the FTA may conduct audits on registered businesses to ensure compliance with the excise tax regulations.
Excise Tax Advisory
Real Time Auditors and Accountants provide comprehensive advisory services to help businesses understand the excise tax regulations and their implications. They assist in identifying excise goods, determining tax rates, and understanding the obligations of registered businesses.
Excise Tax Registration and Compliance
Their team of experts helps businesses register for excise tax, file tax returns, and pay the due tax on time. They also assist in updating registration details, managing tax queries, and handling any issues that may arise with the FTA.
Record-keeping and Auditing Services
Real Time Auditors and Accountants offer record-keeping services to ensure that businesses maintain accurate records of their excise goods transactions. They also provide internal audit services to help businesses identify any gaps in their excise tax compliance and recommend corrective actions.
Excise Tax Training
To ensure that businesses are well-equipped to handle their excise tax obligations, Real Time Auditors and Accountants offer customized training programs. These programs cover the fundamentals of excise tax in the UAE, registration and compliance requirements, and best practices for record-keeping.
Excise tax is an essential aspect of the UAE’s taxation system, aimed at discouraging the consumption of harmful goods and generating additional government revenue. Real Time Auditors and Accountants provide a comprehensive range of services to help businesses navigate the complexities of excise tax regulations and ensure compliance with the FTA requirements. By partnering with Real Time Auditors and Accountants, businesses can be confident in their excise tax compliance, allowing them to focus on their core operations.