FTA introduces new system for excise goods registration
The Federal Tax Authority rolled out a new electronic system for registering excise goods and new reporting requirements related to excise tax returns and declarations.
The FTA called on all businesses dealing with excise goods, which are products that are taxed at the point of manufacture rather than sale, to follow the new process of registering excise goods online and to submit all of the required documents.
The requirements are clarified in new guides and request that businesses submit product details, ingredients, marketing information including images and videos, lab tests in some cases and the product’s retail price. This is based on UAE retail prices or in the relevant country in cases where products are not sold in the UAE.
The authority also urged all taxable entities to comply with the new tax return forms and reporting requirements including import, produce, release from designated zones and local purchase scenarios, which ensures increased transparency and accuracy, the FTA said.
Excise tax was introduced across the UAE in 2017 on carbonated drinks, tobacco products and energy drinks to boost government revenue following a slump in oil prices. Carbonated drinks are subject to 50 per cent excise tax, while tobacco products and energy drinks are subject to a 100 per cent tax.
The FTA also said that anyone who produces or imports an excise good to be sold in local markets is subject to excise tax, as is anyone who stores such goods or releases them from a designated area in the UAE.
The FTA said that there is no threshold for excise tax, meaning that any business with activities involving excise goods is required to register under the new system and calculate its tax amounts.
New manuals were published with instructions on how to register excise goods within the system and comply with the reporting requirements, according to the FTA.
The FTA further clarified that anyone who produces or imports an excise good to be sold in local markets is subject to excise tax