Excise tax is a kind of indirect tax charged on those goods that are injurious to human health or the environment. This includes tobacco, sugary drinks, and energy drinks, among others. Those organisations engaged in manufacturing, importation, or trading would have to register for the excise tax and make the return at periodic intervals. It is crucial for organisations engaged in such activities to familiarise themselves with the procedures involving excise tax registration and return filing so as to avoid penalties from UAE tax laws.
What is Excise Tax Registration?
Excise tax registration will involve notifying the Federal Tax Authority (FTA) of businesses’ dealings with excisable goods. This would ensure that such businesses comply with regulatory tax requirements and oblige them to fulfil any tax obligations.
Who Should Register for Excise Tax?
The following businesses have to register for excise tax:
- Manufacturing Excisable Goods: Businesses that manufacture excisable goods must register for excise tax.
- Importation of Excisable Goods: Businesses importing goods such as tobacco products, carbonated beverages, or energy drinks must register for excise tax.
- Stocking Excisable Goods: Entities that hold excisable goods in a large quantity with the intent of selling in the future must register.
- Distribution of Excisable Goods: Other businesses that are involved in the distribution or resale of excisable goods also require registration.
Procedure for Registration of Excise Tax
1. Registration at FTA Account
- Open an account using the Federal Tax Authority online portal.
- Input your basic information like company name, email address, and contact number.
2. Excise Tax Registration Application
- Log into your FTA account and fill out the form for excise tax registration.
- Give details of your business operations, dutiable products, and accounts.
3. Attach Supporting Documents
- Gather and upload necessary documents, such as trade licenses, tax identification numbers, and import/export permits.
4. Review and Submit
- Check all the information provided in the application form before submitting.
Be accurate to avoid delays or rejections.
1. Get Approved
- The FTA processes the application and informs the business once it is approved.
- After approval, the business is issued a Tax Registration Number (TRN).
- After registration, registered businesses are required to submit their periodic tax returns with regards to their excise tax liabilities. Here’s how to do it.
2. Open the FTA Portal
- Log in to your FTA account to access the return filing page.
3. Taxable Data
- Collate information on excisable goods manufactured, imported, or distributed within the tax period.
- Include the number of units, value, and applicable excise tax rate.
4. Tax Return Form
- Submit the excise tax return form on the portal.
- Ensure accuracy in calculations to reflect the correct tax liability.
5. Pay the Excise Tax
- Submit the payment for the declared tax amount through approved payment methods.
6. Submit the Tax Return
- Once the payment is completed, submit the return within the specified deadline.
Conclusion
The process of excise tax registration and return filing is cumbersome, but it is undoubtedly an important step for businesses trading in excisable goods. The key to easy navigation is being well-informed about the requirements and ensuring compliance on time, thereby avoiding legal complications and smooth operation.
RBS Auditors is your trusted partner for all tax-related services. Reach out to us today for expert assistance in excise tax compliance and keep your business on track.