Excise Registration in UAE: A Comprehensive Guide

Businesses involved in the production, import, or stockpiling of excise goods are required to have Excise Registration within 30 days with the Federal Tax Authority (FTA).

This guide will provide a complete overview of the excise tax registration process in the UAE, including who is required to register, the steps involved, required documents, timelines, exemptions, and penalties for non-compliance.

What is Excise Tax and Excise Goods?

Excise Tax is a form of indirect tax levied on specific goods deemed harmful to human health or the environment. These goods, referred to as "excise goods," typically include:

• Tobacco and tobacco products
• Carbonated drinks
• Energy drinks
• Electronic smoking devices and tools
• Liquids used in electronic smoking devices
• Sweetened drinks

Who Needs to Register for Excise Tax in the UAE?

Businesses and individuals must register for excise tax in the UAE if they are involved in any of the following activities:

• Producing excise goods within the UAE as part of their business operations.
• Importing excise goods into the UAE.
• Releasing excise goods from an Excise Tax Designated Zone.
• Stockpiling excise goods in the UAE as part of their business activities.
• Operating as warehouse keepers who manage excise warehouses or designated zones.

Exemptions from Excise Tax Registration

Businesses that do not regularly import excise goods may qualify for an exemption. To be eligible, the business must demonstrate that it imports excise goods less than once every six months or fewer than four times over a period of 24 months.

Note: Even if a business is exempt from registering, it may still be required to pay excise tax on imported goods if their value exceeds the duty-free threshold.

Deadlines for Registration

While there is no specific deadline for excise tax registration in the UAE, businesses must register for excise tax within 30 days from the date they start conducting activities that incur excise tax liabilities.

For businesses intending to engage in the production, import, or stockpiling of excise goods, registration must be completed before any such activities commence.

Steps to Register for Excise Tax in the UAE

The excise tax registration process in the UAE is completed online through the Federal Tax Authority (FTA) portal using the EmaraTax platform. 

Estimated Time to Submit Application: 45 minutes
Estimated Time for Approval: 20 business days from the date the completed application is received by the FTA.

Follow these steps to register:

Step 1: Login/Sign Up to EmaraTax Portal

• Visit the FTA website and access the EmaraTax portal. 
• Log in using existing credentials or UAE Pass.
• If you don’t have an account, click ‘Sign Up’ to create one.

Step 2: Go to the Taxable Person Dashboard

• After logging in, access the dashboard to see linked Taxable Persons.
• If none are linked, create a new Taxable Person by entering the required details.

Initiate Excise Tax Registration

• Select the Taxable Person to register and click 'View'.
• On the dashboard, click the "Excise" tile and then ‘Register’.

Review Guidelines and Instructions

• Read and confirm the registration guidelines and instructions.
• Click ‘Start’ to proceed.

Complete the Application Sections

Fill in the following details 

• Entity Details: Select and enter entity type details.
• Identification and License Details: Provide main trade license information.
• Business Activities: Add and specify all related activities.
• Owners: Enter details for all owners.
• Branch Details: Add details if your business has branches.
• Contact Details: Enter the primary business address.
• Business Relationships: Optional section for business relationships.
• Bank Details: Provide bank information (optional).
• Excise Tax Details: Specify excisable activities and goods.
• Additional Details (GCC Member): Provide GCC import details if applicable.
• Customs Details: Enter customs registration details and upload documents.
• Authorized Signatory: Enter signatory details, auto-fill if the Manager/CEO is the signatory.
• Review and Declaration: Confirm all details and click ‘Submit’.

After Submission

• Note the reference number generated for your application.
• Await review from the FTA, which may approve, reject, or request more information.
• Check your application status on the EmaraTax dashboard.

For the complete registration guide Click here.

Required Documents for Excise Tax Registration

To complete your excise tax registration, you need to provide the following documents:

• Valid Trade License / Business License
• Passport or Emirates ID of the authorized signatory
• Proof of Authorization for the authorized signatory
• Official Declaration on the entity’s letterhead, signed and stamped by the authorized signatory, detailing the entity’s activity related to excise goods, the type of activity (production, import, stockpiling), and the start date
• Bank Letter validating the bank account details of the registrant

Additional documents (may include):

• Articles of Association or Power of Attorney (not required for individuals)
• Certificate of Incorporation (for "Legal person - Incorporated")
• Partnership Agreement (if applicable)
• Documents detailing the organization’s activities and size

Depending on your registration type, you might also need:

• Club, charity, or association registration documents (if applicable)
• Copy of the decree for Federal or Emirate UAE Government Entities
• Emirates ID or passport copy of the owner(s)

Consequences of Non-Compliance

Failure to register for excise tax, pay the tax due, or comply with FTA regulations can result in significant penalties:

• Failure to register within the specified timeframe: AED 20,000.
• Failure to file returns on time: AED 1,000 for the first time; AED 2,000 in case of repetition within 24 months.
• Late payment penalties:

Conclusion

Excise tax registration in the UAE is a legal obligation for any business involved in the production, import, or stockpiling of excise goods. Understanding the registration process, required documentation, and compliance requirements is essential to avoid penalties and ensure smooth business operations.