Dubai Fahidi heights Al hamriya | London DA16 3DJ Welling

How Excise Consultancy Services in Dubai Can Boost Your Business.

  • August/7/2023

Excise Consultancy Services in Dubai is intended to assist businesses in understanding and complying with the country’s taxes laws for excisable products and supplies. Understanding the procedures for calculating the amount payable for excise taxes can be challenging for firms operating in these highly regulated industries.

Many businesses now outsource their tax compliance to Excise Tax Advisory, a firm that specialises in advising on tax liabilities for various products and services accessible in the UAE market, in order to ensure compliance with all legal duties related to the payment of excise taxes in Dubai.

The excise law applies to products classified as excise goods, such as tobacco, energy drinks, carbonated beverages, and so on. Forthright is a renowned accounting and bookkeeping organization in the UAE that provides excise tax consultancy services to assist businesses with tax auditing and payment. Before using competent tax consulting services, you can ensure that the reported excise tax liability is accurate and filed to the tax authorities before the deadline.

Excise Consultancy Services in Dubai

Excise Tax is a sort of indirect tax applied on specific goods and services in order to ensure that they pay their fair share of taxation. It is a sort of consumption tax applied on specific goods such as tobacco, carbonated beverages, or alcoholic beverages. There are various questions regarding the excise tax and how it is currently calculated.

A business cannot handle every business process on its own. The reason for this is that different types of professionals are necessary for each sector, particularly in financial elements when it comes to the UAE. Outsourcing such financial issues to qualified and accredited Tax consultants in UAE is thus the wise decision.

Forthright consultancy, a market leader in accounting, tax consulting, and bookkeeping services, ensures that its clients are in compliance with UAE tax rules by delivering superior Excise tax advisory in Dubai.

Who should Register for Excise Tax? 

Companies engaged in the following activities must register for Excise Tax: –

  • Excise imports into the UAE
  • The manufacture of excise goods for consumption in the UAE.
  • In some circumstances, excise items are stockpiled in the UAE.
  • A warehouse keeper in charge of an excise warehouse or specified zone.

A person’s rights during a tax audit relates to excise liability in the UAE 

  • To keep an eye on the procedure when the auditor removes the papers
  • To reclaim documents that have been removed by the auditor after the tax assessment has been finished. 
  • To request and receive a receipt from the auditor for the removal of any record or document. 

Excise goods products to be registered 

  • Carbonated beverages, including any aerated liquid other than unflavored aerated water
  • Energy drinks are any liquids branded or sold as an energy drink that contain stimulant chemicals that provide mental and physical stimulation.
  • Nicotine and tobacco products
  • Electronic smoking devices and accessories
  • Fluids found in electronic cigarettes and tools
  • Drinks with added sugar. 

Excise-Free Products 

  • Ready-to-drink beverages with at least 75% milk or milk replacements
  • Baby food and formula
  • Beverages taken to meet special dietary requirements 
  • Beverages used for medical purposes.

Rates of excise tax

  • 50% off carbonated beverages
  • a hundred percent on cigarette items
  • a hundred percent on energy drinks
  • Completely on electronic smoking gadgets
  • 100% on liquids used in these gadgets and tools
  • 50% off any product containing added sugar or other sweeteners.

 Records must be kept in accordance with the Excise Tax Law in Dubai, UAE. 

According to the UAE Excise Law, a tax registered person must keep the following documents for a year prior to the introduction of the Excise Tax.

  • Accounts and supporting documentation for all Excise products/goods imported, manufactured, or stockpiled.
  • Evidence of excise products sold outside of the UAE.
  • Documents supporting the export of excise items from the UAE.
  • A detailed account of the taxable person’s physical inventory.
  • Account for excise products that have been lost or destroyed.
  • Tax record for excise items imported/manufactured in the UAE by the taxable person.
  • Tax record pertaining to excise products purchased or manufactured for the purpose of stockpiling.
  • Proof of tax deducted on excise goods sold outside the UAE, as well as proof of tax paid and submitted.
  • Statement of the value and amount of excise goods physically kept by the taxable person, item by item.
  • Statement of facts pertaining to the taxable person’s average monthly inventory.
  • A statement detailing the average monthly sales for each excise item.
  • Details on excise products manufactured by the taxable person are stated.
  • Details on excise products purchased by the taxable person from outside the UAE (Import).
  • Excise goods produced by the taxable person, item by item.
  • Excise products imported by the taxable individual, item by item.
  • Details of excise items sold locally by the taxable person, item by item.
  • Excise items sold outside the UAE (Export) by the taxable person, item by item.
  • Excise goods discharged from the designated zone, item by item.
  • The taxable person’s company and retailer information.

Frequently Asked Questions on excise tax advisory service

1. What are the excise tax rates in uae? 

  • Tobacco and tobacco products, 100%, and liquids in electronic smoking devices and instruments, 100%
  • 100% in favour of legal electronic smoking devices and accessories Carbonated beverages are 50% off.
  • 100% for energy drinks, 50% for sweetened beverages

2. What exactly is a designated zone?

A designated zone is any gated area designed to be a free zone that may only be reached or exited through an authorised route, as well as any site defined by the Authority as being under the authority of a Warehouse keeper.

3. What is the registration threshold for excise registration in the UAE?

There is now no requirement to register for Excise tax. However, if the FTA determines that the individual does not routinely import excise items or discharge excise goods from specified zones, he may be barred from registering.

4. What items are exempt from excise tax? 

Ready-to-drink beverages that contain at least 75% milk, infant food, dietary beverages, and medical beverages are all exempt from excise tax. Typically, products are taxed at the moment of their release or use. The excise duty will be levied on the producer, maker, or importer of the excise items in this scenario.

5. Are excise tax refund available?

Unlike VAT, excise tax is paid only once in the supply chain, and businesses that have purchased excise goods cannot receive their excise tax back.


Dubai Fahidi heights Al hamriya | London DA16 3DJ Welling

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