Procedure & Documents required for Registration for Excise Tax in Dubai

Procedure & Documents required for Registration for Excise in Dubai / U.A.E

The very first step for the businesses is to get registered under the Excise tax. The official website of the Federal Tax Authority www.tax.gov.ae provides the online facility for Excise registration.

Who would be required to register for Excise tax?

The following groups will be required to register for excise tax:

  • Producers of excise goods.
  • Importers of excise goods.
  • Stockpilers of excise goods.
  • Warehouse keepers responsible for excise goods.

The above persons shall apply to the Authority for Tax Registration as set forth in Federal Law No. (7) of 2017 on Tax Procedures, within 30 days as of the end of any month during which the Person carries out or intends to carry out activities mentioned above or from the effective date of this Decree-Law 1st Oct’17, whichever is later.

Who is exempted to register from Excise tax?

The Authority may exempt a Person from Tax Registration, if the Tax is due as an importer of excise goods and release of excise goods from a designated zone and he can demonstrate to the Authority that he will not regularly Import Excise Goods, pursuant to what is specified in the Executive Regulation of this Decree-Law.

Excise registration process in UAE is as below:

1. The applicant should register online on the Federal tax authority website. www.tax.gov.ae

2. Excise registration form would require specific business details which would be specified in the Executive regulations

3. The various documents required are not limited to :

Document identifying the authorized signatory e.g. Emirates ID (Authorized signatory can be director, owner, someone holding a power of attorney to sign on behalf of the business)

Trade license

Other official documents authorizing the entity to conduct activities within UAE, like:

a. Certificate of incorporation

b. Articles of association

c. Bank account details

If successful a Tax Registration Number (TRN) will be issued within 20 days.

Do retailers have to register for Excise tax?

Generally, retailers are not expected to register for excise tax because they are not expected to be importers or producers of excise goods.

Retailers will only need to register for excise tax if they are: a) Producers of Excise Goods in the State; where that production is in the course of doing business. b) Importers of Excise Goods. c) Warehouse Keepers of a Designated Zone. d) Stockpilers of Excise Goods in the State, where that Stockpiling is in the course of doing business.

After the law comes in to effect, it is expected that in most cases, retailers will purchase excise goods that are already in free circulation. These goods will already have had excise tax applied and paid.

Will excise tax be payable by travellers entering the UAE?

Travellers entering the UAE with excise goods for non-business purposes will not be required to register as an importer of excise goods.Travellers may need to pay the excise tax due on the goods depending on the value of the goods being imported. Where the value of the goods is below the threshold for exemption from Customs Duty as per the Customs Laws, no excise tax is due.
Where the value of excise goods exceeds the value of the exemption for Customs Duty purposes, then excise tax will be due on the total value of the goods.

Physical payment of excise tax will be required before or at the time of import. Further details on the channels that will be available for travellers or non-registered persons to pay the excise tax liability will be released in due course.

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