Excise Tax Services
Efficient Excise Tax Solutions for Businesses in the UAE
Excise tax is a type of indirect tax levied on specific goods produced or imported within a country. These goods are either harmful or unhealthy for the human body. Excise tax increases the prices of these goods drastically. So it discourages the consumption of these goods and generates additional revenue for the UAE Government.
Excise Taxable Goods and Applicable Rates
- Tobacco and Tobacco Products: Excise tax rates for tobacco products in the UAE are set at 100%. Some of them are chewing tobacco, cigars, cigarettes, expanded tobacco, and hand-rolling tobacco.
- Carbonated Drinks: An excise tax of 50% applies to carbonated drinks, concentrations, powders, gels, or extracts used to create such drinks. However, unflavored aerated water is exempt from this tax.
- Energy Drinks: They carry a 100% excise tax category if sold as beverages providing mental and physical stimulation. They may contain stimulant substances like caffeine, taurine, ginseng, guarana, or similar substances.
- Electronic Smoking Devices and Tools: Electronic smoking devices and tools carry a 100% tax rate. Besides, all liquids used in these devices, even if nicotine-free, are subject to the tax under Customs HS code 38249999.
- Sweetened Drinks: There is an excise tax of 50% on sweetened drinks that have sugar or sweetener added to them. This includes ready-to-drink beverages and products like concentrates, powders, gels, and extracts. Sugar sources comprise white sugar, soft white sugar, powdered sugar, soft brown sugar, and glucose syrup.
Excise Tax Registration Benefits
- Ensuring proper registration helps your business avoid penalties, fines, and legal consequences.
- With the correct registration in place, you can continue your excise-related operations seamlessly, without interruptions.
- Complying with excise tax regulations demonstrates your commitment to responsible business practices, enhancing your reputation among stakeholders.
- Registration opens doors to the excise goods market, allowing you to legally produce, import, or release goods subject to excise tax.
Which Businesses Need to Give Excise Tax?
- Manufacturing or Producing Excise Goods: If your business manufactures or produces goods subject to excise tax, compliance is mandatory.
- Importing Excise Goods: Importers of excise goods into the UAE should fulfill their excise tax obligations.
- Releasing Excise Goods: Businesses involved in releasing excise goods from designated areas or designated zones are subject to excise tax requirements.
Excise Tax Services by Reflechir
- Registration for excise tax in UAE: We handle the complete registration process, ensuring that your business is compliant with the UAE excise tax requirements.
- Product listing and classification: Our team conducts a thorough review of your entity to identify the products that qualify for excise tax registration. We ensure accurate product classification to avoid any compliance issues.
- Stock/inventory counting and duty calculation: We provide guidance on stock and inventory management to ensure accurate duty calculation. Our experts help you maintain proper records and comply with excise tax regulations.
- Stockpilers advice: If your business deals with stockpiling goods subject to excise tax, we offer expert advice on the associated obligations and compliance requirements.
- Ongoing excise duty return filing and compliance services: We handle the preparation and filing of your excise duty returns on an ongoing basis, ensuring compliance with reporting deadlines and requirements.
For up-to-date information and personalized guidance on excise tax compliance in the UAE, our experts at Reflechir are ready to help you.
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