Excise duty is levied on taxable persons who sell certain types of goods that are harmful to the environment or to human health. These companies have to comply with the UAE excise duty laws, which include registration, filing of declarations, voluntary disclosures, and many others. However, the Federal Tax Authority is always updating new reporting requirements on excise duty compliance in the UAE. For this reason, companies recognize the importance of the perfect implementation of excise duty laws and regulations. Our tax consultants in Dubai will help you adapt to the changing FTA regulatory landscape.
Excise duty law in the UAE
According to Federal Decree-Law No. 7 of 2017, companies are required to register if they deal in excisable goods in any emirate. This includes electronic smoking devices, tobacco, carbonated beverages, energy drinks, etc. Under the FTA, all taxable entities are obliged to comply with the excise duty regime in the UAE. The government is constantly updating the tax laws to stay one step ahead. To comply with UAE tax rules, FTA auditors will check the accuracy and compliance of your excise tax records at any time.
What does excise compliance mean?
Excise compliance simply means ensuring that your excise records comply with your local tax obligations. The Federal Tax Authority is responsible for the collection and assessment of taxes in all Emirates of the UAE. The relevant regulatory authorities will check your excise tax registration, returns, and filing in accordance with the tax period. Proper handling of excisable goods will exempt you from FTA non-compliance penalties.
The ultimate objective of excise compliance
The main objective of excise duty compliance in the UAE is to protect companies’ accounts from heavy fines from the FTA. The administering tax authority will subsequently impose penalties on a company that fails to comply with the excise duty laws. They are imposed for incorrect registration, late filing of declarations, submission of invalid documents, or other information. The FTA is very strict in imposing penalties for non-compliance with excise duty rules. It is therefore advisable to hire professional consultants to provide excise duty services in the UAE and to ensure that all necessary compliance obligations are met.
Why is it difficult for companies to comply in the UAE?
The tax authority in the UAE is constantly changing laws and regulations to attract investors to the country. The UAE government has done this in order to beat the global business competition. But this makes it harder for companies to comply with tax rules. Businesses are confused about the right time to register, whether they are over the threshold, how often they need to file an excise tax return in the UAE, and so on. This is because yesterday’s excise duty compliance may not be the same as today. For a successful excise duty application, always set FTA guidelines.
What do you get in our excise compliance service?
Excise compliance in the UAE is a very important process that has undergone significant changes to save the country from the harmful effects of excisable goods. When managing your excise compliance, our tax consultants highlight a number of factors. Let us discuss our excise compliance services which include:
To carry out an excise duty assessment
Excise duty valuation is the process of determining the value of excisable goods. It involves calculating the amount of excise duty according to the excise duty rate. Valuation is important because even a small error in the calculation can lead to the loss of tax records. expert excise consultants efficiently process and calculate the amount of tax payable to the government, leaving no room for error. We provide targeted assistance to individuals and businesses to help them comply with excise duty requirements.
Timely submission of excise declarations
Excise tax returns must be filed accurately with the FTA for each tax period. A registered legal person who fails to submit an excise duty return on time is not only liable to fines, but also to a loss of reputation. Our tax advisors ensure that your returns are filed correctly and by the due date. We file your statutory declarations together with your returns to ensure transparency of excise goods.
Amendments to your excise duty register
Excise duty records must be up-to-date and accurate to avoid FTA penalties. Poor excise duty records can make it difficult for registered businesses to register for excise duty, submit declarations and obtain refunds. If you find yourself in a similar situation, you can consult our tax experts in Dubai. Our team maintains and amends your records in accordance with tax laws, so take advantage of our best excise services in the UAE.
Review all your excise tax information
The accuracy and validation of your excise documents and other related information are paramount to excise compliance. A small error or omission of information can lead to fines and penalties. That’s why our tax experts in Dubai check and prepare all your supporting documents in accordance with FTA guidelines, so you can avoid unexpected compliance issues.
Advice on FTA notifications
To ensure compliance with the UAE excise duty laws, every taxpayer must keep abreast of any amendments made by the authority. However, this may seem too complicated for a businessman due to a lack of knowledge and time. Our tax consultants keep you up-to-date with the excise notifications received from the Federal Tax Authority. We help companies with their complex tax issues and procedures.