Registration for excise tax starts on Sunday
Businesses in UAE required to register via FTA’s website ahead of the October 1 implementation
Businesses in the UAE required to register via the Federal Tax Authority’s website ahead of the October 1 implementation |
The Federal Tax Authority (FTA), the government entity responsible for implementing and collecting federal taxes in the UAE, said it will launch the registration process for excise tax on Sunday.
Businesses will be required to register via the FTA’s website, the Authority said in a statement yesterday.
The decision comes ahead of the October 1 implementation of nationwide excise taxes, which will be charged on tobacco products, carbonated drinks (with the exception of sparkling water), and energy drinks. The tax will be at a rate of 100 per cent on tobacco products and energy drinks, and will be at a rate of 50 per cent on carbonated drinks.
In its statement, FTA said it will be assisting businesses in the UAE with regards to financial and technical systems to ensure readiness to comply with tax regulations. This covers both the excise tax in October 2017, and the ValueAdded Tax (VAT), which will be implemented starting January 2018.
Excise taxes are payable by the individual or entity producing or importing products affected by the tax. It also affects individuals and entities that stock these products if they have not already been taxed.
Taxable persons are required to settle their taxes within 15 days of the end of each month.
Registration process
“The registration process for businesses eligible for excise tax is an important and critical juncture in implementing the federal tax system in the UAE. It is the first step towards complying with the tax procedures and laws, and an opportunity for UAE-based businesses to adapt their internal financial and administrative systems to the advent of this major step forward for the maturing national economy,” Khalid Al Bustani, director general of FTA, said in a statement.