Consulting services in the field of excise duties
Following the introduction of excise duty in the UAE in 2017, anyone trading in certain products deemed harmful to human health and the environment will have to pay taxes to the state. The excise law applies to products falling under the category of consumer goods, including tobacco, energy drinks, carbonated beverages, etc.
CDA is one of the leading accounting firms providing Excise Tax Consultancy Services In Dubai and assists companies with tax audits and payments. By using the right tax consultancy, you can ensure that your excise returns are accurate and filed with the authorities within the deadlines set by the tax authorities.
Excise tax consultancy in the UAE
Excise tax advice
Excise duty is an indirect tax on certain products that are usually harmful to human health or the environment and are known as “excisable products”. GST was introduced in the UAE in 2017.
The GST is introduced to reduce the consumption of unhealthy and harmful goods and to generate revenue for the government to use for useful public services. Ultimately, consumers will have to pay more for goods that are harmful to human health or the environment.
Under the UAE Federal Excise Tax Decree No. 7 of 2017, companies are required to register for excise tax. The deadline for companies to register is 30 November 2019. The deadline for companies to register their shares is 15 January 2020.
Taxpayers who are engaged in excise-related activities such as tobacco products, carbonated beverages, and energy drinks are advised to engage an audit firm to provide them with expert advice on excise matters.
CDA is one of the leading accounting, tax and bookkeeping service providers in the UAE, providing excellent GST advisory services and ensuring that clients are compliant with tax regulations.
Who needs to register for GST?
Companies operating in the following sectors are required to register for GST
Companies importing excisable products into the UAE
Manufacture of excisable products and their consumption in the UAE.
In some cases, the accumulation of excisable goods in the UAE
Warehousemen responsible for controlling warehouses or designated excise premises
The rights of individuals during tax inspections in the UAE in relation to the obligation to pay excise duty
During a tax inspection, a taxpayer has the following rights
Process control, where the auditor removes documents.
Retrieving the documents if the auditor has removed them after the tax audit.
To request confirmation from the auditor of the disposal of any record or document.
Products registered as excisable products
Carbonated beverages, including carbonated beverages other than unflavoured carbonated water.
Energy drinks, including any beverage that is marketed or sold as an energy drink and contains stimulants that provide mental and physical stimulation.
Tobacco and nicotine products
Electronic devices and smoking aids
Liquids used in electronic smoking devices and appliances
Products exempt from excise duty –
Ready-made beverages containing at least 75 % milk or milk substitutes.
Artificial milk/infant formula
Beverages consumed for special dietary needs
Beverages are consumed for medical purposes.
Excise duty rate –
In accordance with Council of Ministers Decision No. 52 of 2019 on excise duty on excisable products, the rates of excise duty are as follows.
Carbonated beverages are subject to a 50% tax.
Tobacco products are 100%.
Energy drinks at 100%.
100% on electronic smoking devices.
Liquids used in these devices and apparatus, 100%.
All products with added sugar or other sweeteners are taxed 50%.
New list of excise duties and tax rates
50% tax on sweetened beverages
100% on electronic devices and smoking aids
100% for liquids used in electronic vaping devices
The minimum price for tax registration –
A minimum price of Dhs0.40 must apply for cigarettes and Dhs0.10 for hookahs, prepared tobacco or similar products.
Records to be kept in accordance with the UAE Excise Tax Law (Dubai Excise Tax Law)
Proof of goods sold outside the United Arab Emirates.
Documentation for goods exported outside the UAE.
A detailed description of the physical shares held by the taxable person.
Description of the goods in case of loss or destruction.
Tax documents relating to goods imported/produced by the taxable person in the UAE.
Tax documents for goods purchased or manufactured for storage.
Certificates to be retained and produced for goods sold outside the UAE.
Information on the value and quantity of goods and other items actually stored by the person making the tax return.
Informative statement of the average monthly inventory of the tax collector.
An informative statement of the average monthly sales of each consumer good.
An informative statement detailing the goods produced by the taxable person.
Information on goods purchased by the taxable person outside the United Arab Emirates (imported goods).
Information on goods produced by the taxable person.
Information on excise goods imported by the taxable person.
Information on excise goods sold locally by the taxable person.
Information on excise goods sold (exported) by the taxable person outside the United Arab Emirates.
Information on articles released from designated areas.
Information on businesses and retailers to whom the taxpayer sells GST goods.
Enforcement and penalties
The tax authority has the power to audit taxpayers and impose fines on businesses that fail to comply with the law.
The FTA database is directly linked to Customs and excise goods are commodity coded and can be easily identified.
With regard to the application of excise duties to new additional goods, importers cannot turn away excise goods unless they are registered under the FTA.
Failure to register excise duties on time will result in a fine of Dhs 20 000.
If excess stocks of excise goods are not registered as of 1 December 2019 by 15 January 2020, the fine can be as high as Dhs 20,000.
CDA GST advisory services in Dubai
CDA offers a range of GST advisory services in Dubai, including tax planning, document verification and tax assessment. The excise tax advisory services offered by CDA are listed below.
GST planning and consultancy
CDA’s expert staff assists clients in dealing with GST by informing them of options to mitigate the impact of GST.
Verification of all documentation
CDA experts check all documentation related to the goods and assess whether it complies with UAE tax laws.
Assessment of tax accounting
CDA experts will verify the tax calculated by the taxpayer and ensure that the calculated tax is correct.
Completing the assessment
CDA specialists carry out inventories on specific dates to verify the accuracy of the taxpayer’s physical inventory.
CDA specialists train the company’s employees in tax audits and prepare them for future tax audits.
Services to support the registration of goods
CDA’s specialized staff provides unlimited support to clients and ensures the success of the entire tax registration process.
Excise tax compliance services
CDA experts analyze all tax-related documents to ensure tax compliance before further action is taken.
Ensuring the accuracy of tax documents for excise audits
CDA experts review excise tax records, returns, and reconciliations to ensure timely submission of excise tax returns for FTA excise tax audits. CDA professionals help maintain tax records in compliance with tax laws, avoid penalties, and reduce costs and effort.
Our tax professionals provide systematic GST advisory services in the UAE to assist and guide businesses through the GST registration process and comply with tax laws. We guide you through the entire tax process and help you grow your business by providing better strategies.
CDA Accounting & Bookkeeping Services LLC also offers financial management services, auditing services, accounting and bookkeeping services, accounting software, due diligence services, and VAT advisory services in Dubai to make it easier for our outstanding clients. We specialize in handling.