Excise Tax Archives

FTA Releases Cabinet Decision No. 108 of 2023 Amending UAE Excise Tax Regulations

Posted on May 20, 2024 by admin

Changes in UAE Excise Tax Laws: Cabinet Decision 108 of 2023 on Federal Decree Law No.7 of 2017 on Excise Tax

In a recent development, the United Arab Emirates Federal Tax Authority (FTA) revealed major revisions to the UAE Excise Tax structure through Cabinet Decision 108 of 2023. These amendments, marking a significant shift in the taxation landscape since its introduction in 201, have taken effect since last December 1, 2023.

The key changes in the amended regulation are as follows:

Introduction of New Definitions:

The decision introduces new terms such as “Official Evidence,” “Shipping Certificate,” and “Commercial Evidence” to streamline the process of verifying the export of Excise Goods from the state. These changes are intended to enhance clarity and accuracy in record-keeping.

Tax Registration:

The amendments emphasize that a rejected Tax Registration application does not exempt you from complying with UAE excise tax regulations. Businesses can reapply once they meet the Tax Registration requirements, ensuring continued adherence to regulatory standards.

Tax Deregistration:

Under the new rules, the FTA has the authority to deregister businesses without a formal request from the taxpayer in certain circumstances, such as when the business is no longer liable for the tax or if maintaining the registration could compromise the integrity of the tax system. Article 6 has been amended to allow the Authority to deregister a taxable person without a request in the following conditions:

If the Authority determines that the person has ceased conducting activities, unless it is proven that they intend to resume these activities within the next six months, or
If maintaining the registration would harm the integrity of the tax system.

The FTA must notify businesses of deregistration decisions within five business days.

Stockpiling:

The amendment in Article 11 stipulates that a taxable person’s entire stock of excise goods will be deemed ‘excess’ if audited records of stockpiled goods are not maintained. Businesses are now required to keep audited records of their excise goods from the effective date of the Decree-Law. Failure to maintain these records may result in the Authority considering the entire stock as excess excise goods, thereby making it fully taxable.

Exemption for Release for Consumption:

Article 12 introduces the concept of ‘natural shortage.’ If a shortage occurs due to the natural characteristics of the goods and meets the standards and controls specified by the Authority, the shortage can be notified according to the approved mechanisms. Proper documentation must be maintained to prove the shortage. In such cases, the goods are not considered as released for consumption.

The provisions also outline exceptions to the release of Excise Goods for consumption, particularly in cases of natural shortages within designated zones. These ensure proper documentation, notification, and verification processes for businesses operating in these zones.

Treatment of Designated Zone:

A new clause has been added to Article 15, treating a Designated Zone as if it were within the State if there are changes in operational mechanisms or violations of Designated Zone conditions. Additionally, the requirement to retain sufficient documentation on the value and quantity of excise goods subject to deficiency or shortage, or those that will be destroyed, has also been included in this article. Treating the Zone as within the State in case of operational changes or violations underscores the commitment to maintaining regulatory standards.

Documents for Deductible Tax:

In practical scenarios, the Authority now allows the submission of a customs declaration and commercial evidence, or an Exit Certificate and official evidence, to prove the export of goods. However, the Authority retains the discretion to accept these documents and may specify alternative forms of evidence depending on the nature of the goods or exports. Clarifications regarding the considered payment of tax further support this framework.

The Authority has also clarified that rejection of tax registration or forced deregistration does not exempt a person from complying with the provisions of the law. This includes submitting another application for registration when the conditions are met.

Another notable amendment, effective from June 1, 2024, introduces the option for non-registrants to apply for a refund on excise goods exported directly or indirectly, upon fulfillment of certain conditions.

Tax Refunds in Special Cases:

New provisions establish conditions for tax refunds on direct and indirect exports by non-taxable persons conducting business. These provisions impose strict requirements, including physical exportation, payment evidence, and the retention of specific documents, to ensure the legitimacy of refund applications.

Conclusion:

Cabinet Decision 108 of 2023 reflects the UAE’s Federal Tax Authority’s proactive efforts to enhance the UAE Excise Tax framework. As businesses adjust to these changes, understanding the updated provisions is essential for compliance and risk mitigation. The transparent and detailed nature of the amended regulations contributes to a more straightforward and reliable taxation system in the UAE.

Summary of the Amendments to Executive Regulations of UAE Excise Tax Law

In conclusion, the recent amendments introduced through Cabinet Decision No. 108 of 2023 mark a significant shift in the regulatory landscape governing UAE Excise Tax in the UAE. These changes, effective from 1st December 2023, address key aspects such as definitions, tax deregistration criteria, stockpiling considerations, exemptions for goods release, treatment of Designated Zones, and documents required for deductible tax.

The explicit provisions aim to enhance clarity, streamline processes, and ensure adherence to compliance standards. Taxable persons are urged to familiarize themselves with these updates, recognizing their implications for taxation and operational practices. As the regulatory framework evolves, the Federal Tax Authority continues to strive for a robust and transparent taxation system, promoting fairness and efficiency in the realm of UAE Excise Tax.

The changes aim to bring more clarity to the taxation system, emphasizing compliance and transparency. Businesses are encouraged to understand these amendments to ensure continued adherence to regulatory standards in the UAE.

How Alliance Prime can help you in this new UAE Excise tax amendment?

Alliance Prime can provide support in reviewing the operations of your entity, ensuring compliance with the updated regulations in Excise Tax UAE.

For Queries and Support:
WhatsApp: +971 58 825 7795
Email: contact@alliance-acc.com

Excise Tax in UAE: Understanding the Basics of Indirect Tax

Posted on December 11, 2023 by admin

In the intricate landscape of the United Arab Emirates (UAE), businesses encounter various challenges, with tax compliance standing out as a paramount concern. Amidst the dynamic tax framework, two significant pillars, Value-Added Tax (VAT) and Excise Tax in UAE, play a pivotal role. This article delves into the realm of Excise Tax, shedding light on its fundamentals and exploring how businesses can benefit from the expertise of excise tax consultants, with a focus on Alliance Prime.

Understanding Indirect Taxes in the UAE

Before delving into the specifics of Excise Tax, it is essential to grasp the broader context of indirect taxes in the UAE. VAT, introduced in 2018, is a consumption-based tax applied to most goods and services. It is a responsibility that businesses bear throughout the supply chain, from charging and collecting to paying it to the Federal Tax Authority (FTA). The VAT landscape encompasses standard rates, zero rates, exemptions, and goods and services outside the VAT scope.

Excise Tax in UAE, implemented in 2017 and expanded in 2019, is another vital component of the UAE’s indirect taxation system. Often referred to as a “sin tax,” Excise Tax is levied on specific goods considered harmful to human health or the environment. These goods include tobacco and tobacco products, electronic smoking devices, energy drinks, carbonated drinks, and sweetened drinks.

Products Applicable for Excise Tax in UAE

Excise tax is a form of indirect tax levied on specific goods, typically those that are harmful to human health or the environment. Excise tax was introduced in the UAE in 2017, and it is currently applicable to the following good. The scope of Excise Tax includes, but is not limited to:

Tobacco and Tobacco Products: All items listed within Schedule 24 of the GCC Common Customs Tariff fall under the purview of Excise Tax.
Electronic Smoking Devices and Tools: Since 2019, Excise Tax is applicable to electronic smoking devices and the liquids used in such devices.
Energy Drinks: Any beverage marketed or sold as an energy drink, containing stimulant substances such as caffeine, taurine, ginseng, and guarana, is subject to a 100% tax.
Carbonated Drinks: All aerated beverages, except for unflavored aerated water, attract a 50% tax.
Sweetened Drinks: Introduced in 2019, sweetened drinks are subject to a 50% tax.

Businesses Obligated to Register for Excise Tax

Businesses engaging in the import, production, or stockpiling of excise goods, as well as overseeing excise warehouses or designated zones, are required to register for Excise Tax. Unlike VAT, there is no threshold for Excise Tax, necessitating registration for all entities involved with excise products.

Excise Tax Registration Process

Registering for Excise Tax in UAE is a crucial step for businesses, and the process is facilitated through the e-services section on the FTA website. The deadline for registration is imperative, and businesses must ensure compliance with excise tax regulations to avoid penalties.

The Role of Excise Tax Consultants

Given the complexity of excise tax regulations, businesses can benefit significantly from the services of excise tax consultants. Alliance Prime, a renowned accounting and tax consultancy based in the UAE, offers comprehensive excise tax solutions. Their services include excise tax registration, compliance management, and expert guidance to navigate the nuances of excise tax laws.

Excise Tax – UAE: A Closer Look

Excise tax is an indirect tax imposed on the sale of specific commodities. These goods are taxable if they are imported into the UAE, manufactured in the UAE, or stockpiled in the UAE. The primary purpose of the excise tax is to reduce the consumption of those particular goods to restrict unhealthy practices. In certain scenarios, goods will be physically labeled to show that the excise tax has already been paid to the government.

How Excise Tax in UAE Works

Excise tax in UAE is levied on the importer, producer, or stockpiler of excise goods in the UAE. The tax is calculated based on the value of the goods at the time of release for consumption.

There are two ways to pay excise tax in the UAE:

Monthly payment: Excise taxpayers can register for monthly payments with the Federal Tax Authority (FTA). Under this scheme, taxpayers are required to file a monthly excise tax return and pay the tax due within 15 days of the end of the tax period.
Quarterly payment: Excise taxpayers can also register for quarterly payments with the FTA. Under this scheme, taxpayers are required to file a quarterly excise tax return and pay the tax due within 30 days of the end of the tax period.

Excise Tax Registration Services

Excise Tax Registration Services are integral to ensuring that businesses maintain compliance with taxation laws, which undergo frequent changes and revisions. Companies like Alliance Prime provide these services to help businesses cope with changes, revisions, additions, and removal of tariffs. The UAE government introduced Excise Tax in 2017 on tobacco products, carbonated drinks, and sport or energy drinks. Two years later, in 2019, the government extended Excise Tax to e-cigarettes, soft drinks, and e-liquids. In effect, the Emirati government charges Excise Tax on goods that harm human health and the environment.

Excise Tax in UAE and Its Impact on Businesses

Businesses involved in the import of excise goods into the UAE, the production of excise goods released for consumption, the stockpiling of excise goods, or overseeing an excise warehouse have a responsibility to register for Excise Tax. The Federal Tax Authority (FTA) provides extensive support and guidance to assist businesses in fulfilling their compliance obligations. Failure to comply with Excise Tax regulations can result in audits and penalties imposed by the FTA.

Conclusion

In conclusion, Excise Tax in UAE is a critical aspect of the indirect tax landscape. Businesses must stay informed, comply with regulations, and seek professional assistance to ensure a seamless experience. Alliance Prime stands as a reliable partner, guiding businesses through the complexities of Excise Tax and contributing to their overall success. For more information and to enhance your Excise Tax compliance, visit Alliance Prime’s website: https://alliance-acc.com/.

Tax Consulting Services in UAE: Expert Advice for Your Business

Posted on December 6, 2023 by admin

Alliance Prime, a leading consultancy in the UAE, specializes in providing comprehensive tax consulting services for businesses of all sizes. With a highly skilled and experienced team, we are committed to offering expert advice and solutions tailored to meet your specific tax needs. From corporate tax consulting services to value-added tax (VAT) advisory and excise tax consulting services, we cover a wide range of areas to ensure that your business complies with the latest tax regulations and maximizes its financial potential. Let us guide you through the intricacies of tax management and help you navigate the complex world of taxation seamlessly.

Significance of Tax Consulting Services in the UAE

Tax consultants in Dubai play a critical role in supporting businesses for various reasons:

Expertise and Knowledge: Tax consultants in the UAE possess comprehensive knowledge of tax regulations, including VAT and Corporate Tax. They stay updated with the latest changes in VAT rules, ensuring businesses remain compliant. With a deep understanding of the intricacies of tax laws, these consultants can provide valuable advice to minimize tax liabilities and maximize tax recoveries for businesses.
Adherence to Compliance: Adhering to tax compliance is imperative for businesses in Dubai, as non-compliance can lead to substantial penalties. Tax consultants in Dubai assist companies in maintaining compliance with tax regulations, thereby avoiding potential fines or penalties.
Time Efficiency: VAT compliance can be a time-consuming process, particularly for businesses unfamiliar with tax regulations. Outsourcing VAT compliance to a tax consultant enables businesses to concentrate on their core operations, saving valuable time and resources.
Cost-Effectiveness: Tax consultants in the UAE aid businesses in identifying opportunities to optimize their VAT positions, ultimately reducing tax liabilities and maximizing tax recoveries. This can lead to significant cost savings for businesses in the long term.
Peace of Mind: t

Value Added Tax (VAT) Services in the UAE

The introduction of the Value Added Tax (VAT) law in the UAE has significantly impacted businesses across various sectors. At Alliance Prime, we understand the importance of complying with VAT regulations and offer specialized services to help you navigate this complex landscape. Our VAT services include comprehensive guidance on understanding the implications of VAT on your business, planning for VAT implementation, and ensuring legal compliance with filing and registration requirements. With our detailed understanding of the technical aspects of VAT, we can assist you in adapting your business systems and processes to adhere to the new VAT regulations effectively.

Excise Tax Consulting Services

Our excise tax consultation services are tailored to assist businesses in understanding and complying with excise tax regulations in the UAE. With our in-depth knowledge of excise tax requirements, we provide expert guidance on excise tax implications for your business, helping you to ensure proper compliance and minimize any potential tax-related risks. We work closely with businesses to streamline their excise tax management processes, enabling them to make informed decisions and operate within the legal framework set by the UAE government.

Corporate Tax Services in UAE?

In the UAE, businesses are required to comply with tax laws and regulations set by the government. Corporate tax will be levied at 0% for taxable income up to AED 375,000 and 9% for taxable income over AED 375,000. Large multinational corporations that fulfill particular requirements related to ‘Pillar Two’ of the OECD Base Erosion and Profit Shifting initiative will be taxed at a different rate. Corporate tax services help companies to navigate this new complex tax system and ensure compliance with tax regulations.

Country by Country Reporting and Economic Substance Regulations

Our consultancy services extend to assisting businesses in understanding the intricacies of country-by-country reporting and economic substance regulations in the UAE. We provide guidance on the applicability and compliance of these regulations, ensuring that your business meets the necessary requirements set forth by the authorities. By offering comprehensive insights and actionable strategies, we help businesses navigate these complex reporting requirements effectively.

Importance of Tax Consulting Services

Tax consulting services play a crucial role in ensuring that businesses in the UAE adhere to the country’s taxation laws and regulations. With the support of experienced tax consultants, businesses can mitigate potential risks, optimize their tax positions, and ensure compliance with the latest tax requirements. From offering strategic tax planning to providing guidance on tax computation and compliance, tax consultants are instrumental in helping businesses manage their tax-related obligations efficiently.

Benefits of Tax Consulting Services

Engaging the services of a tax consultant brings numerous benefits for businesses operating in the UAE. From providing essential information and advice on tax matters to assisting with tax return filing and audits, tax consultants play a pivotal role in streamlining business operations and ensuring regulatory compliance. By staying updated with the latest changes in taxation policies, tax consultants help businesses make informed decisions and implement effective tax management strategies. Their expertise in handling complex tax issues and providing tailored solutions enables businesses to minimize tax liabilities and avoid potential penalties, ensuring peace of mind and financial stability.

International Tax Services in the UAE

Navigating the complexities of international tax laws can be challenging for businesses expanding their operations globally. Our specialized international tax services focus on providing comprehensive assistance in structuring cross-border transitions, tax planning, and understanding double taxation treaties. We work closely with the Ministry of Finance to ensure that you gain the necessary certificates, such as value-added tax certificates and tax residency certificates, essential for conducting international business in the UAE. Our team has a deep understanding of international tax implications and can guide you through the process to ensure that your business remains compliant and tax-efficient.

Why Choose Alliance Prime for Your Tax Consulting Services?

Alliance Prime stands out as one of the premier choices for businesses seeking reliable and professional tax consulting services in the UAE. With a team of qualified financial professionals and tax experts, we are committed to providing comprehensive solutions that address your specific business requirements. Our tailored approach to tax consulting ensures that we understand your business intricacies and offer customized strategies to optimize your tax positions and ensure compliance with the latest regulations. By leveraging our expertise and industry knowledge, you can navigate the complexities of the UAE’s tax landscape seamlessly and focus on achieving your business objectives. Contact us today to learn more about our services and how we can support your business’s need for tax consulting services.

Excise Tax Registration in UAE: How to Comply with Tax Laws

Posted on November 21, 2023 by admin

The United Arab Emirates (UAE) boasts a robust and dynamic business environment, but with the advantages come regulatory responsibilities. One such critical aspect for businesses operating in the UAE is excise tax compliance. This comprehensive guide combines the expertise of Alliance Prime, a leading accounting and tax consultancy in the UAE, with key insights into excise tax laws to help businesses navigate this complex terrain effectively.

Excise Tax in UAE: Understanding the Basics of Indirect Tax

Excise tax, an indirect tax, was introduced in the UAE in 2017. Its primary aim is to deter the consumption of goods that are harmful to human health or the environment. The goods currently subjected to excise tax in the UAE include carbonated drinks, tobacco products, energy drinks, electronic smoking devices, and liquids, and products with added sugar or sweeteners. The tax rates vary based on the nature of the goods, with rates like 50% for carbonated drinks and 100% for tobacco products.

Excise tax is levied on the importer, producer, or stockpiler of excise goods in the UAE. The tax calculation is based on the value of the goods at the time of release for consumption. The payment can be done through two schemes: monthly payments, where taxpayers file a monthly excise tax return and pay the due tax within 15 days of the period end, or quarterly payments, requiring taxpayers to file quarterly returns and pay the due tax within 30 days of the period end.

Registering for excise tax in the United Arab Emirates (UAE) is a crucial step for businesses looking to comply with the country’s tax laws. As of my last knowledge update in January 2022, the UAE imposes excise tax on specific goods, such as tobacco, energy drinks, and carbonated beverages. To navigate this process seamlessly, businesses can refer to official resources like the Federal Tax Authority (FTA) website, where they can find comprehensive information on registration procedures and compliance requirements.

According to statistics from the FTA, a significant number of businesses have successfully registered for excise tax since its introduction. Accessing the latest data and guidelines is essential for staying abreast of any regulatory changes. For the most up-to-date information and assistance, businesses can explore the FTA’s dedicated portal on excise tax registration: FTA Excise Tax Registration Portal. It serves as a valuable resource to ensure that businesses adhere to the UAE’s excise tax laws and operate within the legal framework.

Responsibilities of Excise Taxpayers

Excise taxpayers in the UAE bear several responsibilities, including registration with the Federal Tax Authority (FTA), filing tax returns on a monthly or quarterly basis, timely payment of excise tax, and maintaining accurate records of all excisable goods.

How Excise Tax Consultants Facilitate Compliance

Given the complexity of excise tax compliance, businesses often turn to excise tax consultants for guidance. Alliance Prime, as a prominent accounting and tax consultancy in the UAE, provides a range of services to assist businesses in meeting their excise tax obligations. These services include excise tax registration, filing returns, calculating tax liability, record-keeping, dealing with the FTA, and managing excise tax risks.

Benefits of Using Excise Tax Consultants

The advantages of engaging excise tax consultants are manifold. They help in reducing the risk of non-compliance, ensuring businesses meet all excise tax obligations and avoid penalties. Excise tax consultants provide peace of mind by handling the intricate aspects of compliance, allowing businesses to focus on core operations. Their expertise also extends to offering valuable advice on various aspects of excise tax compliance.

Who Should Register for Excise Tax?

Excise tax registration is mandatory for businesses involved in importing excise goods, producing or manufacturing excise goods released for consumption in the UAE, stockpiling excise goods, and overseeing excise warehouses or designated zones. The FTA provides support and guidance, and non-compliance can result in penalties and fines.

Exemptions for Excise Tax Registration

For those not regularly importing excise goods, exemptions from registration may apply. However, even if exempt, businesses might still be required to pay excise tax on goods exceeding the duty-free threshold. It’s crucial to understand these nuances to ensure compliance.

How to Comply with Excise Tax Laws in UAE

For businesses aiming to comply with excise tax laws in the UAE, a strategic approach is crucial. Consultants like Alliance Prime excel not only in ensuring compliance but in providing comprehensive services that go beyond the basics. From excise tax registration to ongoing advisory support, excise tax consultants offer a holistic solution.

Key Steps for Compliance

This section outlines key steps businesses can take to ensure excise tax compliance:

Registration with FTA: Initiate the compliance journey by registering with the FTA. Excise tax consultants guide businesses through this process, ensuring accurate and timely completion.
Examine Business Activities: Understand the scope of excise tax by identifying specific business activities that require compliance. Excise consultants conduct a thorough analysis to pinpoint areas needing attention.
Comprehensive Record-Keeping: Maintain meticulous records of excisable goods. Excise tax consultants assist in establishing robust record-keeping systems, ensuring transparency and accuracy.
Audit Preparedness: Prepare for potential FTA audits by conducting internal audits. Excise consultants provide audit support, identifying and rectifying compliance issues.
Timely Filing of Returns: File excise tax returns on time to avoid penalties. Excise tax consultants offer assistance in filing returns within stipulated time frames.
Stay Informed About Changes: Stay abreast of regulatory changes to ensure ongoing compliance. Excise consultants provide advisory services, keeping businesses updated on the latest developments.

Additional Tips for Businesses

In addition to excise tax specifics, businesses are advised to keep accurate records of excisable goods, regularly review compliance procedures, and seek professional advice from excise tax consultants if needed. By following these tips, businesses can enhance their excise tax compliance and avoid potential penalties or interest charges.

Your Trusted Excise Tax Partner in UAE

Alliance Prime stands out as a trusted excise tax partner in the UAE. Their team of experienced excise tax consultants assists businesses in excise tax compliance, from registration to ongoing advisory services. The consultants ensure businesses stay abreast of regulatory changes and provide expert guidance on adapting to evolving tax laws.

Conclusion

Navigating excise tax compliance in the UAE demands not just adherence to regulations but a strategic and proactive approach. Excise tax consultants emerge not only as a guide for compliance but as a comprehensive partner, offering services that extend beyond the essentials. For businesses seeking not only excise tax compliance but a trusted partner for their overall tax and financial needs, tax consultants such as Alliance Prime stand ready to deliver. If you are still confused about how to register for excise tax in the UAE, feel free to contact the excise tax consultants in UAE.

Excise Tax Registration – UAE: Your Comprehensive Guide

Posted on September 27, 2023 by admin

What we consume on a daily basis is one of the keys to a healthy lifestyle. The UAE Government imposed an excise tax on October 2017 to safeguard the health of its residents. Limiting the intake of specific products that are regarded harmful to our health and discouraging consumers from consuming it. Excise tax registration in UAE is mandatory for the businesses that import, produces, or stockpiles excise goods or release them from a designated zone in the UAE.

Alliance Prime is offering the best excise tax registration services in Dubai. Businesses who are involved in these activities or trade these goods must register for Excise Tax in the UAE as the tax is charged at the time of import or manufacturing.

The following goods are currently subject to excise tax:

tobacco and tobacco products (Cigarettes, cigars, and other tobacco-related items fall under this category)
liquids used in electronic cigarette equipment and devices
tools and electronic cigarette gadgets
carbonated beverages
energy beverages
sweetened beverages

Who is liable for excise tax registration in the UAE?

Importer of excise goods into the UAE
Producer of excise goods in UAE
Warehouse Keeper of Excise Goods in UAE
Stockpiler of excise goods in the UAE

When to get excise tax registration TRN?

To register for UAE Excise Tax, businesses intend to import, produce, or stockpile of excisable goods. They must register within thirty days before the start of operation or the law’s effective date. If a business does not regularly import or release excise goods from DZ, it may be eligible for excise tax registration i.e., no more than once in a 6-month period, or 3 times in a 24-month period.

Deadline for Excise Tax Registration

There is no registration threshold for excise tax; therefore, any corporation that intends to be involved in any of the activities listed above must register prior to the date of introduction. Excise duties on the expanded list have been effective from 1st December 2019 and full compliance on registration is mandatory. Tax Registration will avoid all stakeholders any fines or obstacles that may come up from late or failed registration.

Providing Excise Tax Consultancy and Compliance

Alliance is dedicated to assisting businesses that have trouble adhering to FTA rules and laws by offering them technical advice and knowledge. Our experience and understanding help businesses get an unbiased view of the issues they are dealing with and provide them with solutions.

Excise Health Check/Pre-Tax Audit

Conducted by the Federal Tax Authority to determine whether the taxpayer is following tax laws and to ensure that the tax liability has been paid within the specified deadline.

How can we help?

Alliance will assist in organizing all required documentation that the FTA is requesting and ensure that everything complies with FTA law and regulations. Our company will help you find any errors or mistakes in your excise return with the support of our knowledgeable and experienced team, who have years of experience, in order to reduce the number of fines and penalties.

Tax Disputes Resolution Committee (TDRC)

Majority of applications for reconsideration of FTA penalties are rejected. The taxpayer has the right to disagree with the FTA’s decision and take their appeal to Tax Disputes Resolution Committee (TDRC) formed by Ministry of Justice.

How can we help?

In the event that the reconsideration application is rejected and the TDRC matter moves forward, our firm will respond or make submissions on the Company’s behalf and provide any necessary support.

Refund of excise taxes and a voluntary disclosure

A taxable person may be eligible to apply for a refund position when filing an excise return and the value of the deductible is more than the value of excise tax due. When excise tax is already paid on an excise good and then exported outside the UAE.
When the Taxpayer submitted an incorrect or omitted information for the Excise Return, Refund Application, or Tax Assessment. They can notify FTA by submitting Voluntary disclosure

How can we help?

We will be preparing voluntary disclosure form to rectify the errors made in the filed excise return.
We will be Preparing and submitting the VD on the company’s behalf and assisting them by responding to the FTA’s additional requirements.

Tax Agent and Tax Agency

Businesses can simplify the process of fulfilling their tax obligations in the UAE by working with an approved tax agent or tax agency.

How can we help?

As an approved tax agent and agency, Alliance can assist the taxpayer by communicating with FTA about all tax duties and filing any requests for the FTA to review its decisions. Representing the company during any audits and from the FTA.

Tax Assessments

The excise tax assessment, the most complex and challenging indirect tax in the United Arab Emirates, and carefully monitored by the Federal Tax Authority. In the first half of 2022, the FTA conducted inspections of businesses that deal with excise goods. Businesses have committed thousands of violations, including failure to register for excise tax, failure to comply with excise drink package requirements, packaging illegal cigarettes and tobacco goods without a digital stamp, and many more.

How we can help?

Issues and liabilities may unavoidably develop following an Excise inspection. Our firm can offer guidance on how to deal imposed penalties and keep them to a minimum as possible and also assist the taxpayer in reviewing the excise tax assessment made by the FTA.

Excise Tax Registration & Amendment

Since there is no threshold for for excise tax registration, everyone who engages in any of the below activities required to register for excise tax:

The import of excise goods into the UAE.
The production of excise goods where they are released for consumption in the UAE.
The stockpiling of excise goods in the UAE in certain cases.
The release of excise goods from a designated zone

Amendment:

You must notify the FTA by amending your records within (20) working days of the occurrence of any events that will affect the Excise Tax records retained by the FTA, as specified during your registration, if you are registered for Excise Tax.

Designated-Zone Registration/Renewal

A designated zone Warehouse can be set up any place in UAE after obtaining approval from the federal tax authority a company is also required a Warehouse keeper to supervise the activities of the proposed DZ registrations your warehouse as the designated zone will benefit your company as excise tax payment will be deferred till goods are released to the mainland, it avoids the unnecessary delay in claiming a refund on that goods that are exported and you can avail the benefit of waiver of excise tax on lost and damaged goods approved by FTA unlike when it’s lost in the mainland.

We can help with the Registration of Warehouse Keepers & Designated Zones. Our team will walk you through the process, and our subject matter experts will respond to all of your questions along the way. With our expertise and experience in all types of excise law, you can take advantage of the exemptions from excise laws in the designated zones.

DZ Renewal

The federal tax authority has published a public clarification regarding the renewal of designated zone registration for excise tax purposes. The Designated Zone registration is valid for 12 months and must be renewed every year.

Warehouse keeper must follow below procedures to maintain its designated zone status

*Examine the designated zones’ registration expiry dates

*For each designated zone that needs to be renewed, submit the designated zone renewal (amendment) form and pay the renewal fee separately;

*Examine the quantity and nature of excise items held in the specified zone so that the FTA can assess the value of the existing financial guarantee and, if necessary, direct the warehouse keeper to submit an updated financial guarantee.

Excise Tax Deregistration

Any company that has registered for excise can request excise tax deregistration within a certain time frame from the date he is no longer engaged in taxable activities. i.e., import, production, and stockpiling of excise goods in the UAE. In order to deregister, a taxable person must be up to date with all tax return submissions and payments of tax and penalties. It is important to note that fines apply if an application is not submitted to Timeframe.

Excise Product Registration & Amendment (RSP)

Excise Products that are considered to be harmful to human health must register to FTA through the government body “Brandysnc.” Products such as carbonated beverages, energy drinks, tobacco and tobacco products, electronic cigarette tools and devices, liquids used in such tools and devices, and sweetened beverages.

How we can help?

Our company will handle every aspect of registration, including obtaining the Municipality Certificate (Food Label Assessment and MOIAT Conformity Certificate + Schedule of Certification). Advice the client regarding the type of registration they should undertake.

Stockpile Calculation

Before the first implementation of the excise tax in October 2017, Businesses that held excise goods in free circulation in the UAE such as carbonated beverages, energy drinks, tobacco, or tobacco products were obligated to disclose the quantity of their products to the FTA and pay the excess excise tax.

Similarly, if someone has Sweetened beverages, electronic smoking devices and items in their possession as of December 1st, 2019, the person should consider whether he would qualify as a stockpiler or not for Excise Tax purposes and to pay Excess Excise Tax on the stock on hand on 1 December 2019.

How we can help?

An experienced team of highly skilled specialists and auditors in the UAE. Our company is committed to assisting businesses in every phase of declaring their goods to the FTA without generating any issues or penalties.

Why Choose Alliance Prime Tax Consultants and Accountants?

Expertise: Alliance Prime’s experts have a thorough understanding of UAE Excise Tax legislation thanks to their years of experience in tax consultancy. With precise, open financial management in line with the highest international standards, we are your partner in expanding your company.
Efficiency: We make sure the registration procedure is quick and hassle-free, saving you time and energy. Since tax collection is not the goal of tax policy but merely a duty, reducing the administrative burden benefits both taxpayers and the economy.
Compliance: Following the laws and regulations imposed by an authority has become vital. A business should select a reliable organization that provides regulatory tax and compliance services if it wants to avoid future complications. Our team makes sure that your company complies with all Excise Tax rules, minimizing the possibility of fines.
Customized Solutions: We tailor our services to meet your specific business needs, providing personalized solutions.
Ongoing Support: To understand the taxation system of the nation where you live and operate, it is advantageous for any business to engage a reputable, knowledgeable tax adviser. Alliance Prime Tax Consultants and Accountants offer continuous support and guidance to ensure ongoing compliance.

Excise Tax registration becomes a simple process with Alliance Prime Tax Consultants and Accountants on your side. Allowing you to concentrate on what you do best in running your business.

In conclusion, businesses that produce or sell excisable items or engage in excisable activities must register for excise tax in the United Arab Emirates. You can guarantee compliance and prevent any penalties by being aware of the requirements and strictly adhering to the excise tax registration process. If you need help, think about working with professionals like Alliance Prime Tax Consultants and Accountants.

How to Calculate Excise Tax in UAE?

Posted on August 21, 2023 by admin

Calculate Excise Tax in the UAE: Unveiling Methods, Rates, and Implementation Challenges

Since October 2017, the UAE has instituted an excise tax regime that indirectly influences specific goods across production, importation, and sale. This tax launch has dual objectives: generating government revenue and discouraging consumption of harmful items such as cigarettes, fizzy drinks, and energy beverages. In this article, we delve into the various avenues to calculate excise tax costs, explore the specific tax rates in play, and shed light on the UAE’s taxation landscape.

Navigating Compliance and Calculations To comply with excise tax regulations, registered UAE businesses must consistently file returns and pay relevant excise tax on their liable goods. Precise excise tax calculation is paramount to ascertain a company’s financial responsibility. Failure to register or fulfill tax obligations can result in fines and penalties imposed by the Federal Tax Authority (FTA).

Excise Tax Rates in the UAE The UAE applies excise taxes to several products and services, encompassing tobacco, energy drinks, and sugary beverages:

Tobacco Products: A substantial 100% of the item’s retail price.
Energy Drinks: Also at an elevated 100% rate, reflecting their stimulating properties.
Carbonated Drinks: Attracting a 50% excise duty to encourage healthier beverage choices.

Methods of Excise Tax Calculation in the UAE Calculating excise tax in the UAE involves two main methods: the Specific Method and the Ad Valorem Method.

Specific Method: This involves applying a fixed tax rate per unit of a product. For instance, energy drinks may carry a specific tax rate per milliliter, providing clarity for both businesses and consumers regarding the precise tax amount per unit.
Ad Valorem Method: This method calculates the excise tax based on a percentage of the product’s value. High-end automobiles might face a 50% excise tax based on retail value, while jewelry could be subjected to a 5% tax based on its retail price. The Ad Valorem Method requires establishing the goods’ value to determine taxable amounts.

Illustrating Excise Tax Calculation To provide a clearer picture, let’s explore examples of excise tax calculation using both methods:

Specific Method: If a pack of cigarettes costs AED 20, the excise tax would be AED 8, resulting in a total price of AED 28.
Ad Valorem Method: For an energy drink priced at AED 10, the excise tax would be AED 20 (100% of AED 10).

Challenges in Implementing Excise Tax in the UAE The primary challenge in enforcing excise tax lies in cross-border transactions. Ensuring compliance and collecting tax in such scenarios can be intricate.

Furthermore, SMEs might face challenges in dealing with excise tax adoption. They might opt to pass on costs to customers, potentially impacting pricing, or experience reduced profits. Striking a balance between compliance and business sustainability becomes a crucial endeavor.

Why is Alliance Prime the best Excise Tax Consultancy in Dubai?

It is essential that those who are liable to taxation obtain advice from qualified tax advisors in the UAE. These consultants can contribute to the smooth execution of tax legislation and standards. Significant fines may be assessed for breaking these rules.

As an Excise Tax Consultant in Dubai, Alliance Prime can be a great help in understanding, calculating and filing excise taxes. Our team of experts is committed to giving advice that is specifically catered to your needs. Contact our team for more information if you have any questions or need assistance with excise tax or other tax-related issues. We are available to guide you through the complexities of taxation and verify that you are following all relevant rules.

To to Book a Free Consultation, contact us on: at- +971 58 825 7795 or Email us at:- contact@alliance-acc.com

Tax Group Formation Under The UAE Corporate Tax Regime

Posted on July 27, 2023 by admin

As a leading accounting and tax consultancy firm in Dubai, Alliance Prime Accounting & Tax Consultancy is committed to keeping businesses informed about crucial aspects of the corporate tax regime. One such important aspect is Tax Grouping, which allows eligible companies to streamline their tax obligations and be treated as a single entity for corporate tax purposes.

What are Tax Groups, and when can they be formed?

A tax group is a group of companies that are taxed collectively. Under the U.A.E.’s tax laws, companies can form a group or join an existing group to file a single tax return for all the members of the group.

There are some requirements that need to be fulfilled to create a tax group or become a part of an existing tax group. All members of a permanent or temporary group, including representatives, are considered a single entity and pool their income and expenses together for filling purposes.

Intercompany transactions are “out of scope”.

Resident Juridical Persons: Both the parent company and its subsidiaries must be resident juridical persons in the UAE.
Common Financial Year and Accounting Standards: The parent company and its subsidiaries must have the same Financial Year and prepare their financial statements using the same accounting standards.
Ownership and Control: The parent company must own at least 95% of the share capital, hold at least 95% of the voting rights, and be entitled to at least 95% of the profits and net assets of the subsidiary.

It is important to note that the ownership, rights, and entitlement can be held either directly or indirectly through subsidiaries. However, Tax Groups cannot include an Exempt Person or Qualifying Free Zone Person.

How to calculate the Taxable Income of a Tax Group?

Once a Tax Group is formed, the parent company must prepare consolidated financial accounts covering each subsidiary that is a member of the Tax Group for the relevant Tax Period. In the process of calculating the Taxable Income of the Tax Group, transactions between the parent company and each group member, as well as transactions between the group members, would be eliminated.

By consolidating financial accounts and eliminating inter-group transactions, Tax Groups can achieve a more streamlined and accurate calculation of their Taxable Income, optimizing tax efficiencies and compliance.

What are the Benefits of Forming a Tax Group?

By forming a corporate tax group in the UAE, businesses can also enjoy benefits such as better tax planning and reduction of compliance costs. The UAE corporate tax Public Consultation Document provides a detailed description of the benefits and requirements associated with tax groups. However, it is advisable to seek advice from corporate tax advisors in Dubai before making any decision as the government is yet to issue the Corporate Tax Law. This article will provide you with valuable insights into the benefits and requirements of forming a Tax Group.

At Alliance Prime Accounting & Tax Consultancy, we understand the complexities of Tax Grouping and its potential benefits for businesses. Our team of expert professionals is here to provide comprehensive guidance and assistance in forming and managing Tax Groups, ensuring that your company’s tax obligations are met efficiently and effectively.

As the corporate tax landscape evolves, count on Alliance Prime to be your trusted partner in navigating these changes and optimizing your tax strategies to drive your business towards success. If you have any questions or require further assistance regarding Tax Grouping or any other tax-related matters, do not hesitate to reach out to us.

Why is Alliance Prime the best Tax Consultancy in Dubai?

Alliance Prime is a leading provider of auditing, accounting, taxation, and advisory services in the UAE. Our expert team will guide you through the complex laws and regulations of UAE, including Corporate Tax, VAT, Excise Tax, Accounting and Bookkeeping, ESR, Financial Advisory, ERP, etc. We stay up-to-date with the latest changes in laws and regulations in the UAE. If you’re looking for reliable and professional auditing, accounting, taxation, and advisory services in the UAE, look no further than Alliance Prime.

If you would like additional information or clarity on Tax Group or require assistance for planning your Tax Group formation, and its impact assessment, visit localhost/alliance-acc/ or contact us at- +971 58 825 7795 or Email us at:- contact@alliance-acc.com

Obtain Your Tax Residency Certificate in UAE

Posted on July 26, 2023 by admin

The Tax Residency Certificate in the UAE is a document provided to business owners and entrepreneurs to help prevent double taxation. This document is applied for by individuals who are paying taxes in another country, wherein they have an income due to a business. As the UAE is a part of several Double Tax Avoidance Agreements with other countries, having such a certificate helps them avoid being taxed in both countries. Business owners can, therefore, avail of tax benefits by obtaining the Tax Residency Certificate.

Eligibility Criteria for TRC in UAE

Natural persons: The applicant must have been a resident of the UAE for at least 180 days. Also an annual lease agreement officially documented by the competent authorities, such as EJARI in Dubai, municipalities in other Emirates and free zone authorities must be attached to the application.
Legal persons: In order to be eligible to apply for a TRC, the legal person must have been established for a period of at least one year. Financial accounts must be audited or prepared by an accredited audit firm and attached with other required documents to the application. The report must be certified and stamped by the audit firm. The audited financial report to be attached to the application must cover the year for which the certificate is requested. If the certificate is requested for the present year, the audit report must be covering the past year.

* Note: Offshore companies are not allowed to apply for the service because they are not listed in the Double Taxation Avoidance agreements. Unless otherwise specified, the validity of this document is one year.

Documents Required for Tax Residency Certificate in UAE

For Companies

Trade license
Partners’ attachment
Certified Establishment Contract
Passport copy of the owners, partners and directors
ID proof copy of the owners, partners and directors
Residence permit copy of the owners, partners and directors
Audited financial accounts
Authorised bank statements of the last six months
Verified lease agreement
Details regarding the company’s organizational structure

For Individuals:

Passport
Valid Residence Permit and ID Proof
Residential lease agreement/Rental Agreement or Registration Certificate
Authorised bank statements of the last six months
Salary Certificate
GDRFA issued Exit and Entry report
Tax forms of the country wherein the Domicile Certificate will be submitted

Things to Know About the Tax Residence Certificate

The entire process takes around 14 to 21 days.
Once completed, the Tax Residency Certificate is sent to you via your registered email-ID.
Once you receive the certificate, it will remain valid for a year from the date of issue.
While Onshore, Mainland and Free Zone Companies can apply for the Domicile Certificate, Offshore companies cannot, as they are not regarded as residents of the UAE.
However, Offshore companies do have the option of applying for a Tax Exemption Certificate, in place of the TRC.

Benefits of Obtaining the Tax Residency Certificate in the UAE

Avail of tax benefits associated with Double Taxation Avoidance Agreements.
Helps avoid having to pay higher taxes, enabling you to save on valuable resources.
In case you are a part of the CRS group of nations, the TRC helps with maintaining compliance.
Allows you to claim excess taxes paid.
Protects the national economy by ensuring fairness for both taxpayers and the government.
Builds credibility and transparency for the company involved.
Proves residency in the UAE, helping establish authenticity.

Our team of expert professionals at Alliance Prime can help you with every step of the process, enabling you to obtain the certificate with ease. We focus on customer satisfaction and do everything in our power to make sure you receive the best possible service. Furthermore, it is our commitment towards our clients and our strong work ethics that have enabled us to become one of UAE’s best tax accounting, bookkeeping and audit firms. With decades’ worth of experience in the field of finance and compliance in the UAE, our team will surely help you with every need you might have. We also go the extra mile to ensure the timely delivery of services and bring you the best service at the most reasonable prices. So, partner with us, at Alliance Prime, and lay to rest all your worries regarding taxation and compliance.

Why is Alliance Prime the best Tax Consultancy in Dubai?

To obtain a TRC or related enquiry, visit localhost/alliance-acc/ or contact us at- +971 58 825 7795 or Email us at:- contact@alliance-acc.com

Tax Consultants in Dubai

Posted on July 26, 2023 by admin

Tax Consultants in Dubai from Alliance Prime Accounting & Tax Consultancy offer extensive and reliable tax management and consultancy services tailored for businesses in the UAE. Our dedicated team of best tax consultants follows the highest standards of tax compliance practices for VAT, income tax, and Corporate Tax, catering to all businesses, residents, non-residents, and certain foreign companies with sourced income in the UAE.

Tax consultants are professionals who provide valuable assistance to individuals and businesses with their tax-related matters. They play a crucial role in helping clients understand and adhere to tax laws, while also offering advice on tax planning, preparation, and representation. Tax consultants can take on various roles, such as being Certified Public Accountants, approved auditors, Enrolled tax attorneys, or registered tax agents. With their expertise, they may represent clients in audits and appeals with tax authorities, ensuring their tax affairs are in order and compliant with the regulations.

Tax Consultants in UAE

In the UAE, the tax laws surrounding VAT, Excise Tax, and Corporate Tax present various challenges for businesses. To effectively address these challenges, efficient tax consultancy services are essential. Tax consultants in Dubai play a crucial role in assisting businesses with tasks like VAT and Corporate Tax registration and de-registration, filing tax returns, and processing refunds. By ensuring tax compliance, these experts help prevent businesses from incurring fines or penalties due to late registration or delayed tax return filings. Their expertise is invaluable in navigating the complexities of the tax landscape and safeguarding businesses from potential financial consequences.

Alliance Prime proudly owns the best tax consultants in the UAE, who have specialized in various types of taxes- VAT, Excise, and Corporate Tax. Each team ensures that you are compliant with the tax laws, thus avoiding penalties.

Role of Tax Consultants in UAE

Tax Consultants give the right advice, to prepare, and help individuals or businesses to file tax returns in UAE through tax consultancy services. The foremost tax return filing services offered by our Tax consultants in UAE are,

One of the significant roles of tax consultants is to maintain minimum tax for the clients, thus tracking the updated policies provided by banks, and organizations, and providing suggestions based on the financial stability of the client businesses. They are highly responsible for advising and providing relevant information to ensure compliance by the clients.

While preparing and submitting documents to the tax authority in the UAE, tax consultants help with the best practices. These consultants possess adequate knowledge of environmental factors such as updated tax rules and governmental guidelines affecting client businesses.

Let us look at some of the key roles of tax consultants in Dubai:

Preparation of monthly and yearly tax returns and concerned compliance documents
Recording files for documentation and maintenance
Following the information about updates regarding tax laws, regulations, and practices
Researching tax and customs-related issues, especially on behalf of an organization and its clients
Interacting with the Tax Authority and customs team
Actively participating in knowledge management, professional development, and the administrative activities of a company when needed
Optimizing tax and budget-planning for a long-term

Tax Consultancy in Dubai, UAE

Alliance Prime Accounting & Tax Consultancy in Dubai offer comprehensive expertise in handling all types of direct and indirect taxes, including VAT, Excise, and Corporate Tax for businesses in the UAE. Our full tax consulting services cover a wide spectrum, starting from initial tax analysis and planning to continuous support and representation in tax-related challenges. Our team of skilled tax experts plays a pivotal role in assisting businesses and individuals in navigating the complexities of various tax regulations, ensuring smooth compliance and optimizing tax strategies. With us as your tax partner, you can confidently navigate the intricate world of taxes in Dubai.

We specialize in a comprehensive range of key taxes in the UAE, focusing on:.

Value Added Tax
Corporate Tax
Excise Tax
Custom Duty Tax

Tax Consultancy for VAT

Our top tax advisors are highly committed to staying updated with the latest developments from the Federal Tax Authority (FTA). With our team of FTA-approved tax consultants in the UAE, we prioritize delivering outstanding VAT solutions to businesses across the region. Our specialized VAT consultants are dedicated to helping your company achieve VAT compliance while strictly adhering to FTA legislation. Trust us to navigate the complexities of VAT regulations, ensuring your business meets all necessary requirements and remains fully compliant.

Tax Consultancy for Excise Taxes

Understanding your potential responsibilities concerning UAE excise tax is of utmost importance. Our team of excise tax specialists is fully committed to providing robust support and guidance, allowing you to navigate through any excise tax complexities effortlessly. We offer comprehensive excise tax advisory services, covering everything from registration to filing, ensuring that you remain fully compliant with all excise tax regulations. With our expert assistance, you can confidently manage your excise tax obligations and focus on the growth and success of your business.

Corporate Tax Consultancy

Alliance Prime Accounting & Tax Consultancy takes pride in its team of renowned corporate tax advisors and consultants, providing exceptional corporate tax services in the UAE. Our expert tax consultants thoroughly analyze and assess your business, enabling us to assist you in preparing accurate financial audit statements and ensuring seamless registration and filing of corporate tax with 100% compliance. With our dedicated support, you can navigate corporate tax requirements effortlessly, allowing your business to thrive in the UAE market.

Procedure for Tax Consultancy Services in UAE

The consultants implement certain procedures to provide the best tax consultancy services in UAE.

Here are the main procedures involved:

Analyzing the financial aspects of the business
Tax Planning
Verifying the documents
Tax Compliance
Tax Implementations
Review and Support

Tax Consultants and Tax Agents in Dubai

In the UAE, both Tax Consultants and Tax Agents play vital roles in assisting businesses and individuals with their tax responsibilities, although they have distinct differences.

Tax Consultants are experts in tax law and financial advisory, offering guidance on tax-related matters and strategies to minimize tax liabilities. However, they do not possess the authority to represent clients in dealings with the tax authority.

On the other hand, Tax Agents hold authorization from the Federal Tax Authority (FTA) and can represent their clients in communications with the FTA. They are equipped to handle tax return preparations and assist with audits or reviews conducted by the tax authority. Tax Agents must meet specific qualifications and education criteria, adhering to a code of professional conduct.

In summary, Tax Agents are government-authorized representatives who interact with tax authorities on behalf of their clients. Tax Consultants typically possess advanced education and experience in tax law, possibly holding professional designations like Certified Public Accountant (CPA) or Chartered Accountant (CA). Each plays a crucial role in supporting individuals and businesses with their tax matters in the UAE.

Tax Advisors in UAE

With over a decade of extensive experience, Alliance Prime Accounting & Tax Consultancy Dubai excels in delivering top-notch Tax Consultancy services in the UAE. Our highly qualified and knowledgeable tax consultants are dedicated to providing superior assistance with tax calculations and minimizing tax liabilities for your business. Keeping you compliant with the ever-changing tax laws, our Tax Consulting team in Dubai ensures you stay updated with the latest regulations from the country’s tax authority. Trust us to optimize your tax strategies and keep your business in full compliance with the tax requirements.

The Alliance Prime team also helps with these aspects as per the corporate Tax Law through the famous corporate tax services in UAE

Before implementing the Law:

Corporate Tax Assessment Services – an indication of business of the concerned law
Corporate Tax Consultancy
Corporate Tax Registration Services

After implementing the Law:

Need Help with tax consulting? For assistance or queries, call Alliance Prime, or reach out to our office in Dubai.

Why is Alliance Prime the best Tax Consultancy in Dubai?

For any Tax or related enquiry, visit localhost/alliance-acc/ or contact us at- +971 58 825 7795 or Email us at:- contact@alliance-acc.com

The FTA is recognizing its fifth year since implementing Excise Tax.

Posted on March 22, 2023 by admin

The Federal Tax Authority (FTA) declared that the implementation of the Excise Tax has been a great success.

Excise Tax was implemented on the 1^st of October 2017. Excise Tax was applied to Excisable Goods such as Carbonated Drinks at the rate of 50%, Tobacco Products, and Energy Drinks at the rate of 100%. On the 1^st of December 2019, the scope of excise goods was expanded to Sweetened Drinks at the rate of 50% and Electronic Smoking Devices and Tools along with Liquids used in electronic smoking devices and tools at the rate of 100%.

FTA revealed that the total number of Excise Registrants grew continuously from 309 to 1,469 registrants by the end of September 2022. The cumulative growth was 375.41% between the end of 2017 and the end of September 2022.

FTA confirmed that the total number of products registered as Excise Goods increased from 3,078 products by the end of 2017 to 30,834 products in 2022. According to the data, there would be a startling cumulative growth rate of 901.75% from December 31, 2017, and September 30, 2022.

The FTA committee for approving Excise Prices of Goods that is subject to Tax continues to meet the law when approving the prices of goods. Recognizing and classifying products, as well as responding to requests from retailers and shops to adjust product prices or classifications in accordance with specific requirements.

H.E. Al Bustani, the FTA Director General stated that;

“The decision to expand the scope of Excise Goods meant that the excise tax scope would include sweetened drinks, electronic smoking devices and tools and the liquids used within, in addition to tobacco and tobacco products, energy drinks, and carbonated beverages. The decision followed directives from the wise leadership to accelerate the pace of progress towards a safe and healthy society, by reducing the consumption of harmful goods, preventing the damage they inflict onto the community, and combating diseases resulting from consumption patterns harmful to public health, in addition to developing the resources needed to support the expansion of government services to members of the community.”