Federal Tax Authority Intensifies Its Efforts by Increasing Inspections Visits

Inspections carried out in the first half of 2022, resulted in the seizure of AED 5.5 million packages of tobacco products not bearing ‘Digital Tax Stamps’

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a man in a suit and tie dyes a blue background with a white square
a man in a suit and tie dyes a blue background with a white square

A further AED1.07 million packages of selected goods that include soft drinks, sweetened beverages, and energy drinks, valued at AED 130.4 million in tax liabilities.

The authority indicated that the effective control of the markets contributed to the detection of facilities violating tax laws, as 1,213 violations were issued during the field inspection visits carried out in the first half of 2022, while 404 notice of non-registration were sent to violating entities.

To avoid these types of circumstances the company must register for excise tax in UAE through FTA but before registering one must know about the requirement for registration of excise tax, thus our expert team from Al-Wahat Accounts & Audit Services provider will guide you.

UAE excise tax is the indirect tax levied on certain goods and products that are considered to be harmful to the health and environment.

The objective behind the introduction of the excise tax is to reduce the consumption of those harmful products and in addition, the tax has played a considerable role in increasing the government’s financial resources to support towards serving the public.

The selected goods on which excise tax are imposed is:

  • Tobacco

  • Energy drinks

  • Carbonated drinks

  • E-cigarettes, liquids & tools

Registration for excise tax: all taxable person under the excise law is required to submit the tax returns with the FTA and should pay excise tax.

Who is Responsible Filing Excise Tax?
  • The importer of excise goods into the UAE.

  • The production of excise goods where they are released for consumption in the UAE.

  • The stockpiling of excise goods.

  • The release of excise goods from a designated zone

Required Documents For Registration
  1. Trade license/business license

  2. Passport copy of the manager, owner, and senior management

  3. Emirates ID of the manager, owner, and senior management

  4. Certificate of Incorporation

  5. Customs number issued by the Customs department

  6. Authorized signatory documents

  7. Articles of Association/Partnership Agreement

  8. Bank Account details of the company

  9. Business details of role in which you are registering for excise tax

  10. Details of the excise goods the business is involved in.

  11. Customs Authority registration

  12. The TRN if you have registered for excise tax in another GCC State

Failure in getting registered for the excise tax may lead to penalty for violating the law.

If you have any queries contact us info@alwahataudit.co

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