View uae tax laws and procedures vat and excise on the website of the federal tax authority. Based on the common excise tax agreement, the law specified all key areas to be implemented within the uae excise tax. The uae cabinet has announced that the uae will apply a 50% excise tax on sugar sweetened beverages ssbs and a 100% excise tax on electronic smoking devices and equipment, as well as on the liquids used in electronic smoking devices and equipment. Background material on uae vat federal decree law no. They expect the tax to raise uae 7 billion for the uae. Download now the guide states that persons or businesses involved in the following activities. The president of uae has issued the federal law no. October uae excise tax to affect tobacco in duty free. Indirect means the tax is not directly paid by an individual consumer. The excise tax is paid by the end consumer as it influences the ultimate price of the product. On 19 august 2019, the united arab emirates uae ministry of finance mof announced an anticipated expansion. The excise law will be effective from 1 october 2017. Definition of sugar sweetened beverages for excise tax purposes what to do next.
President sheikh khalifa issues uae excise tax law the. The united arab emirates excise tax law august 2017 deloitte. Ethiopian ministry of revenues mor is the body responsible for collecting revenue from customs duties and domestic taxes. Failure to keep the required records specified by the tax procedures law and the tax law. The fta reported an almost 98% compliance rate for businesses. The tax shall impact all excise goods consumed inside the. The uae has published the law on excise taxes for tobacco and energy and fizzy drinks that will pave the way for introducing the levies in. Uae excise tax law emirates chartered accountants group. It seizes and takes legal action on the people and vehicles involved in the act of smuggling while it facilitates the legitimate movement of goods and people. The next will be if you are not registered for uae excise tax but you are releasing excise goods from a designated zone. An excise tax is an indirect tax which is imposed on the sale of excise goods. The united arab emirates uae is one of its member states.
Excise tax scope and rates the excise goods and tax rates are. The first one will be if you are a stockpiler of excise goods before the federal excise tax uae introduction. On 27 september 2017, pursuant to the release of the excise tax law, the united arab emirates uae ministry of finance has issued the cabinet decision no. New update on excise tax laws and regulations dubai ofw. Companies that are engaged in import, production or storing of excisable products should check if they have to be registered at the uae federal tax authority.
Tobacco and tobacco products at 100% energy drinks at 100% carbonated drinks at 50% 3 october 2017 indirect tax alert uae publishes executive regulation on exc ise tax ey global tax alert library access both online and pdf versions of all ey global tax alerts. Today, the uae federal tax authority fta issued a registration user guide on excise tax guide download pdf guide. Excise tax uae excise tax law rules and regulations. Uae federal tax authority has recently published public clarification on deregistration of stockpilers excise tax public clarification extp004. The uae cabinet has approved the list of administrative penalties that will be imposed on businesses for violations of the tax laws. According to the decree law, an excise tax return and payment is due within 30 days of the end of the tax period. Reports late last year showed a strong, positive reception to the newer excise tax. Moreover, it is believed that imposing the tax on goods that are hazardous to health and which are cause to social problem, will reduce the consumption of such goods. The excise tax law shall come into effect from october 1, 2017 in the uae, the ministry of finance has told emirates news agency, wam. The law sets a strong foundation for the planned tax system in uae vat and excise taxes, regulating the administr ation and collection of taxes and clearly defining the role of the. Excise tax the official portal of the uae government. When considering whether a product is an excise good, the following definitions apply.
Law for pension and social security, federal law on vat, vat executive regulations, federal law on excise tax, excise executive regulations and the income tax decrees of the relevant emirates. The united arab emirates uae ministry of finance mof issued the federal decreelaw no. Excise tax registration in uae tax consultants in uae. This is the taxable person guide for excise tax in the united arab emirates uae. The excise law will apply to the excise goods specified by a cabinet decision. The implementation regulations of excise tax were issued with the resolution of the minister of finance resolution no. The uae signed the oecd multilateral instrument on 27 june 2018. This revised publication contains variants of vat law and inter alia includes the analysis of various articles of federal decree law no. The federal tax authority fta has released new requirements as per cabinets decision no 52 of 2019 for excise tax in its updated excise tax user guide. The complete and approved list of the administrative vat fines and penalties in uae for breaching the law related to vat and excise tax are as follows. The uae has issued substantive law on value added tax vat and excise tax.
Excise tax is a form of indirect tax levied on specific goods which are typically harmful to human health or the environment. Excise tax in ethiopia is imposed and payable on selected goods, such as, luxury goods and basic goods which are demand inelastic. Lastly, if you bought a pack of cigarettes for uae 7. The provisions of this law are applied on the excise goods determined. Every single business in the uae that produces, imports or stockpiles excise goods, or intends to do so, is necessary to register for the federal excise tax. Tobacco and tobacco products at 100% energy drinks at 100% carbonated drinks at 50% 3 october 2017 indirect tax alert uae publishes executive regulation on excise tax ey global tax alert library access both online and pdf versions of all ey global tax alerts. In addition to raising revenue, the mor is responsible to protect the society from adverse effects of smuggling. Excise tax will be introduced in the fourth quarter of 2017 of the year 2017 in the united arab emirates, under the framework of the unified agreement between the gcc countries.
Click to download article in pdf list of excise taxable products expanded. The uaes cabinet on wednesday finalised designated free zones for application the federal taxlaw no 8. Excise tax registration user guide the uae ministry of finance had previously announced that the excise tax law would come into effect in the uae from october 1, 2017. United arab emirates issues federal decreelaw on excise tax. How to get excise tax refund in uae reachaccountant. If the excise goods are imported, manufactured or stockpiled in the uae then they are subject to excise tax. Each fine or penalty will be no less than 500 aed and no more than triple the value of the tax on the transaction in question. The ministry of finance of united arab emirates uae has announced that the excise tax law will come into effect on october 1st, 2017. President sheikh khalifa issues uae excise tax law. Therefore, there is no clear legal concept of corporate tax residence in the uae.
The united arab emirates excise tax law federal decreelaw no. Oman, qatar and the uae several bilateral and gccbased free trade agreements no federal corporate income tax, but emiratebased taxation of foreign oil companies and branches of foreign banks has vat, excise tax and customs duty no personal income tax social security for uaegcc nationals only, with end of service. Uae shopkeepers brace for drop in cigarette, soft drink sales. You might also hear or see it referred to as the excise guide 1 or the eg001. Uae federal tax authority has recently published public. The united arab emirates excise tax law federal decree law no. Value added tax vat the official portal of the uae. Some will be required to registering excise tax in uae even when you are not a producer or importer of excise goods. United arab emirates highlights 2019 deloitte united states. Issued by us in the presidential palace in abu dhabi.
Uae federal tax authority fta has recently issued cabinet decision no. Khalifa bin zayed al nahyan president of the united arab emirates. Goods that will be determined as being subject to tax by a cabinet. The uae mof has approved the uae tax procedure law in the month of march 2017.
Article 2 implementations and scope of uae excise tax. October uae excise tax to affect tobacco in duty free by charlotte turner thursday, 24 august 2017 9. This alert summarizes the excise tax law and the implementation regulations. As per article 71 of executive regulations on excise tax law, there are certain cases, in. The decision to expand the list of excise goods is expected to be applicable as of 1 january 2020. We have designed based vat system based on business feedbacks. Excise tax frequently asked questions faqs what is excise tax excise tax is an indirect tax that is imposed on a limited range of goods, rarely on services. The uae federal tax authority fta released cabinet decision no. Place of supply of real estate services is the location of the real estate. An unofficial translated copy is available on the mof website. Businesses required to register for excise tax under the uae federal decree law no. On august 17, 2017, federal decreelaw 7 of 2017 was issued in the united arab emirates uae excise law to be implemented from october 1, 2017. Registration of excise taxhow to get excise tax refund in uae.
Vat executive regulations, federal law on excise tax. Definition of sugar sweetened beverages for excise. This is an unofficial translation 1 cabinet decision no. On the basis of the update in legislation, excise tax will be collected on the items starting from december 1, 2019. Excise tax is imposed to those goods which have an unhealthy impact on our life if consumed. However, it is expected to publish the uae excise tax law. Therefore, the tax is consequently deducted or withheld from the g ulf cooperation council gcc came into force in 1981. Below are the highlights of the fta public clarification.
1548 1019 1366 274 296 501 1344 641 1299 932 5 410 556 926 98 273 1418 1463 869 1013 527 793 217 1071 1212 540 306 187 379 997 355 1431 887 1416 937 1279 145 438 78 1313 152 591 769 1350 238