EXCISE TAX on sugar based product in UAE


Do you import, produce, stockpile, or release Sugar-Based Products?
Have you registered for Excise Tax?

As per the Cabinet Decision, no 52 of 2019, EXCISE TAX on sugar-based products will become effective from Dec 01, 2019. Therefore, any company involved in Trading, Importing, Producing or Stocking of such goods need to make Excise Tax registration to avoid late penalty of AED 20,000/-
Any business which imports, produces or stockpiles excise goods, or releases them from a designated zone in the UAE, should register for Excise Tax.

Registration for excise tax in the UAE: All the taxable persons under the excise law in the UAE are required to submit the tax returns with the FTA and pay the excise tax also. The taxable persons who are involved in the dealing of the excise goods and continue to have an intention in dealing with the above goods should register themselves under the excise tax in the UAE. The person involved in the excise goods should notify the Federal Tax Authority within 30 days of the end of the month in which they were involved or had an intention to be involved in dealing with the excise goods.
A person who was involved in one time importing of the excise goods will be exempt from getting himself registered and filing the excise returns as per the excise tax law in the UAE. However, this exemption under the excise tax in the UAE doesn’t exempt him/her from paying the excise duty on the excise goods brought in (import) in the UAE.

To get the businesses to register for excise tax in the UAE, the service portal is available on the Federal Tax Authority’s website. ARC associates provides their services for getting businesses registered for the excise tax in the UAE.

Failure in getting the business registered for the excise tax in the UAE may lead to a penalty for violating the excise tax law in the UAE and the FTA would also recover the unpaid excise tax.