Everything you need to know about VAT Registration and Excise Tax Registration in UAE


What Is The Procedure For Excise Tax Registration In UAE??

In 2017, the excise tax registration in UAE was established across the country. Excise tax is an indirect tax imposed on certain commodities that are often damaging to human health or the environment. These items are known as "excise goods." The following definitions apply when determining whether a product is an excise good:

  • Any aerated beverage, with the exception of unflavored aerated water, is considered a carbonated drink. Any concentrations, powder, gel, or extracts designed to be converted into an aerated beverage are also considered carbonated drinks.
  • Energy drinks are defined as liquids that are promoted or sold as an energy drink and contain stimulant ingredients that provide mental and physical stimulation, such as caffeine, taurine, ginseng, and guarana, among others. Any substance that has the same or similar impact as the aforementioned substances is likewise included. Any concentrations, powder, gel, or extracts meant to be turned into an energy increasing drink are also considered energy drinks.
  • All commodities listed in Schedule 24 of the GCC Common Customs Tariff are considered tobacco and tobacco products.


  • Electronic smoking devices and tools liquids used in such devices, as well as sweetened drinks, are subjected  to excise duty from December 1, 2019.


Excise tax rates

The rate of excise duty is as follows, according to Cabinet Decision:

  • 50% off carbonated beverages
  • Tobacco goods are taxed at 100%.
  • 100% on energizing beverages
  • 100% on electronic cigarette gadgets
  • Liquids utilized in such equipment and tools are taxed at 100%.
  • 50% off any product that has added sugar or other sweeteners.

The reason for levying excise duty


The UAE government is imposing an excise tax in order to curb consumption of unhealthy and dangerous goods while simultaneously increasing government revenue that can be spent on useful public services.


What impact will it have on consumers?

  • For things that are hazardous to human health or the environment, consumers will have to pay a higher price.


Businesses needed to excise tax registration in uae

According to UAE Federal Decree Law No. 7 of 2017 on Excise Tax, every business engaged in:

  •  the import of excise items into the UAE must register for excise tax.
  • the manufacture of excise items for consumption in the United Arab Emirates
  • In some situations, anyone who is responsible for monitoring an excise warehouse
  •  or designated zone, such as a warehouse keeper, is accountable for stockpiling excise items in the UAE.


FTA is committed to assisting with this by offering significant support and guidance; nonetheless, it is the duty of the firm to ensure that all applicable compliance duties are met.

The FTA has the authority to perform audits of taxable corporations and then impose penalties on those who do not follow the law.

What is the procedure for registering for excise tax?

Businesses can register for excise tax on the FTA website's e-services section. They must, however, first register and create an account. For additional information on other services like vat voluntary disclosure in dubai ,you can avail expert advice from various professional accounting services in dubai. Several accounting firms in Dubai now provide these kinds of services all over the UAE.

The registration deadline has passed.

Because there is no registration threshold for excise tax, any corporation intending to engage in any of the activities listed above must register and account for excise tax prior to the date of implementation, which is October 1, 2017.


UAE has finished its second year since VAT was presented on the stock of available labour and products. This multitude of organisations, as a matter of first importance, are prescribed to get tax collection papers reviewed by tax agents in Dubai, UAE, who will precisely decide their expense consistency and pay their assessments according to the guidelines of  the Federal Tax Authority. Around 90% of the VAT registrants pay their expenses in this duty year. Thus there is an immense rush for VAT audit in UAE before the finish of the assessment year. Charge year is a year time span covered by government forms, which could be month to month or can likewise be quarterly as determined by FTA during enlistment. So as we are to figure out how to get ready for VAT audit in UAE, we ought to get acquainted with tax assessment phrasing, regardless of whether you are arranging finish work by inside examiners or by any vat consultants in Dubai.


What is VAT/Tax reviewing in Dubai, UAE?


First of all,you must not get confused between excise tax registration in uae and vat registration or vat audit in uaeIt is essentially a conventional assessment supported by Tax Agents of the organisation's VAT Ledgers, Sales and Purchases Ledgers Trial offset compromise with standard appraised deals. Zero evaluated deals, Out of degree and Exempt Sales and actual assessment of Purchase Tax Invoices and Sales Tax solicitations for the Tax time frame for example Jan-18 to Mar-18. This guarantees that all liabilities are cleared and each duty due is gathered and given to the public authority during the predefined time period.

Vat returns should have been documented by organisations, should be ready in the right way, recorded appropriately with the right qualities in the right boxes.Vat Agents in UAE can help you on it and make it happen inside the predefined time limit.

Above all, the duty due should be paid and tidied up at the latest the predetermined due date. Assuming you have effectively utilised an <approved tax agent, he will guarantee substance's VAT Compliance, according to FTA rules (that your dealings are made substantial and genuine and you complete a protected and clean business.)


Restorative Actions

Organisations are typically stressed to handle TAX reviews which can be arranged and be efficient assuming you have a tax consultant to help you on it.

Following can be the results for VAT review in UAE by approved Tax agents before FTA review warning

  1. Accounting Archiving Report and Accounting Data adjustment report will be given to the entity’s executives with perceptions and remedial activities.
  2. Assuming that there is need to make changes in the expense time frames, Voluntary disclosure will be ready and submitted to FTA.
  3. On the off chance that VAT sway is beneath the Voluntary disclosure necessity, Adjustment will be done in the next charge period.


  1. Organisation will VAT consistent according to FTA rules and opportunities for the fines by the FTA will be limited. 
  2. Organisation will be totally ready for the FTA Audit. 
  3. Additionally the board can additionally explain their questions in regards to VAT recording and FTA rules during the review with endorsed charge Agents.


What are FTA Audits?

Charge review or as such VAT review, can be directed at whatever point the public authority wishes to inspect the organisation's records and reports. VAT review in UAE includes an itemised system wherein the specialists will actually look at the profits and different subtleties.


Following is the concise techniques for FTA review strategy

Method for Notification and Correspondence by the Authority.

The Authority will execute the Notification by any of the accompanying means:


  1. Enrolled post.
  2. By electronic mail to the location given by the Person being advised.
  3. Posting in the vicinity of the Taxable Person
  4. Some other means as might be concurred by the Person and the Authority

Right to Conduct Tax Audit

  1. For the reasons for directing a Tax Audit, the Authority might assess:
  2. The Premises.
  3. The Documents are accessible at the Premises.
  4. The Assets that are accessible at the Premises.
  5. The bookkeeping frameworks utilised by the Person subject to Tax Audit.
  6. For the motivations behind carrying out arrangements of Clause (4) of Article (17) of this Law, the Tax Auditor will acquire the earlier composed assent of the Director-General, just as a grant from the Public Prosecutor to have the option to enter the piece of the Premises where the Premises or parts thereof are utilised as a residence.
  7. For the motivations behind carrying out Clause (1) of this Article, the word related inhabitant of the Premises, or without the word related occupant, any Person the Authority considers as having command over the Premises, will furnish the Authority with all sensible offices vital for the compelling activity of its powers under this Article.

Notice of Audit

  1. Any notification of a Tax Audit sent by the Authority will express the potential outcomes of hindering the Tax Auditor in the activity of his obligation.
  2. Where a Tax Auditor is relegated to do a Tax Audit as per Clause (4) of Article (17) of this Law, he will give a notification recorded as a hard copy toward the start of the Tax Audit to the accompanying:
  3. The word-related occupant of the Premises assuming he is available at the hour of starting the Tax Audit.
  4. The Person who gives off an impression of being responsible for the Premises on the off chance that he is available and the word related inhabitant is absent.
  5. In some other cases, the notification will be posted on an unmistakable spot in the Premises.
  6. Some other authority of the Authority whom a Tax Auditor considers essential for the compelling activity of his powers under this Decision might go with the Tax Auditor to any Premises.
  7. A Tax Auditor doing a Tax Audit at the Premises of a Person dependent on an authorization of the public investigator as indicated by Article (12) of this Decision, will introduce the licence given by the Authority just as the grant got from the public examiner, notwithstanding the evidence of character each time he is mentioned to do as such.


If you have any doubts regarding the vat registration and excise tax registration in UAE, its always better to seek the help of experts in this field. There are many reputed tax consultants in UAE who deals with customers and companies who are in confusion regarding the VAT and other taxes that are prevalent in UAE.