Businesses can now operate internationally and across international borders because of globalization. During the course of the commercial dealings, commodities and services are imported and exported. Nowadays, these commodities are subject to a variety of levies. The excise tax is one of these. It is a charge placed on the importation of certain items that are hazardous to health. According to the law, an excise tax registration must be completed in order to use these services. The GCC nations are anticipated to approve the framework with various pricing for a variety of goods in order to perform business activities legally.

The Basics of Excise Tax

Excise tax is eventually incurred by the final consumers, but it is collected earlier in the supply chain. Excise tax’s key characteristics are:

  • Generally, it is imposed on consumer goods.
  • It is used on particular goods.
  • It is assessed either at the time of manufacture or import.
  • Businesses collect it on behalf of the tax administration.

Excise Tax Registration in UAE under FTA

The excise duty was implemented by the Federal Tax Administration (FTA) in October 2017. Companies must register for excise tax online through the FTA website’s e-services section. The UAE excise tax registration service requires the submission of a number of necessary papers in order to receive a taxation number. The documents that must be submitted have been discussed in the article’s later section.

Who Should Register for Excise Tax?

Since excise duty relates to the special goods, businesses dealing with these goods should undergo the excise tax registration process that includes producers, importers, stockpilers, and warehouse keepers of excise goods.

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