The Best Excise Tax Consultancy Services In Dubai

Excise tax advice in Dubai (United Arab Emirates)

The introduction of excise taxes in the UAE in 2017 meant that all persons dealing with certain products that are considered harmful to human health and the environment had to pay taxes to the government. The Excise Tax Consultancy Services In Dubai Law applies to products that fall under the category of excisable goods, such as tobacco, energy drinks, and carbonated drinks, etc.

Bestaxa is one of the leading accounting and auditing firms that provide excise tax consulting services in the UAE and assist companies with tax audits and tax payments. With the right tax advisory services, you can ensure that reported excise liabilities are correct and submitted to the authorities within the time limits set by the tax authorities.

Excise tax advice

Excise tax is an indirect tax levied on certain goods known as “consumables” that are often harmful to human health and the environment Excise taxes were introduced throughout the UAE in 2017.

The purpose of excise taxes is to reduce the consumption of unhealthy and harmful goods and generate revenue for the government to spend on useful public services. Ultimately, consumers are forced to pay more for goods that are harmful to human health and the environment.

Pursuant to Decree No. 7 of 2017 of the UAE Federal Law “Excise Taxes”, companies are responsible for excise tax registration. The deadline for company registration is November 30, 2019. The deadline for stock registration is January 15, 2020.

Taxpayers with excise-related activities, such as tobacco products, carbonated beverages, and energy drinks, are advised to authorize an accounting firm to provide professional advice on excise matters.

BESTAXCA is one of the leading providers of accounting, tax, and bookkeeping services in the UAE, offering its clients excellent GST consulting services to ensure tax compliance.

Who needs to register for GST?

Companies operating in the following sectors must register for GST

Importation of goods into the UAE

Goods production when released for consumption in the UAE

The storage of goods in the UAE under certain circumstances

Warehouse employees who supervise goods warehouses or designated areas

The rights of a person during an excise tax audit in the UAE

 Supervising the process of taking out documents by auditors

Retrieval of documents removed by the auditor after the tax audit is completed

Request auditors to remove files and documents and obtain receipts.

Products for which goods registration is required

Carbonated beverages (including all carbonated beverages except flavored carbonated water)

Energy drinks (including all drinks marketed as energy drinks) that contain stimulants that cause mental or physical irritation

Tobacco and nicotine products

Electronic smokers and devices

Liquids used in electronic smokers and devices

Beverages sweetened with sugar

Products exempt from excise duty

Ready-made beverages containing 75% or more of milk or milk substitutes

Milk powder and infant formula

Beverages consumed for special diets

Beverages are drunk for medical purposes.

Excise Duty

In accordance with Cabinet Decree No. 52 of 2019 on excise duty, the excise duty rates are as follows

50% for carbonated beverages.

100% for cigarettes.

100% for energy drinks.

100% for electronic cigarettes.

100% penalty on liquids used in such equipment and tools.

50% discount on all products containing sugar or other sweeteners.

New list of excise duties and tax rates.

50% discount on sugar-sweetened beverages

100% levy on electronic smoking devices and equipment

100% inspection of liquids used in electronic cigarettes

Minimum price for tax registration -.

The minimum price per cigarette must be $0.40 and $0.10 for hookah cigarettes, ready-to-use cigarettes or similar products.

Records are required to be kept under the UAE’s Dubai Crude Oil Law

Under the UAE Excise Tax Law, tax registries must keep the following records for one year prior to the levy of excise taxes

Accounting and supporting documentation for all goods imported, produced, and stored.

Certification of goods sold outside the UAE.

Supporting documentation for goods exported outside the UAE.

A detailed description of the physical stock held by the taxable person.

Description of the goods in the event of loss or destruction.

Tax records of goods imported/manufactured by the taxpayer in the UAE.

Tax records for goods purchased or manufactured for storage.

Records of withholding and reporting taxes on goods sold outside the UAE.

Details of the value and quantity of goods actually stored by the taxable person.

Information statement detailing the taxpayer’s average monthly inventory.

Statement of information on the average monthly sales of certain consumer goods.

A statement detailing the products manufactured by the taxable person.

Detailed statement of products purchased by the taxpayer from outside the UAE (imported products).

A detailed description of the excise goods produced by the taxable person.

Details of the excise goods imported by the taxable person.

Details of excise goods sold locally by the taxable person.

Details of excise goods sold (exported) by the taxable person outside the UAE.

Itemized data on consignments of goods dispatched from the designated territories.

Details of businesses and retailers to whom the taxable person sells GST products.

Tax compliance and penalties

The FTA has the authority to audit taxable businesses and impose penalties on businesses that do not comply with the law.

The FTA’s database is directly linked to Customs and excisable products are batch-coded for easy identification.

With the application of the new additional excise duty on additional items, importers will not be able to clear taxable items if they are not registered under the FTA.

Failure to register for excise duty within the deadline will result in a fine of Dhs 20 000.

Failure to register surplus stock of dutiable products existing on 1 December 2019 by 15 January 2020 could result in a fine of Dhs 20,000.

GST consultancy services in Dubai by BESTAXCA

BESTAXCA offers a range of GST consultancy services in Dubai, including tax planning, document verification and tax assessment.

Below are some of the excise tax consulting services offered by BESTAXCA.

GST planning and consulting

BESTAXCA experts help clients manage GST by making them aware of options to mitigate the impact of GST.

Verification of all documents

BESTAXCA experts will check all the documentation related to the goods and assess their compliance with UAE tax laws.

Assessment of tax calculations

BESTAXCA experts check that the amount of tax calculated by the taxpayer is accurate.

Inventory

BESTAXCA’s experts carry out inventories at specified times to verify the accuracy of the physical inventory kept by the taxpayer.

Staff training

BESTAXCA experts train company staff for tax audits and ensure that they are prepared for future tax audits.

Services to support the registration of goods

BESTAXCA’s experts provide unlimited support to clients and guide them through the entire process of tax registration services without any difficulty.

Excise tax compliance services

BESTAXCA professionals analyze all tax-related documents to ensure tax compliance before proceeding further.

Ensure the accuracy of tax reporting for excise audits

BESTAXCA professionals review excise tax records, returns and reconciliations and submit timely excise tax returns for excise tax audits conducted by FTA. BESTAXCA’s experts help clients keep tax records in compliance with tax laws and avoid penalties, saving them money and effort.

Our tax experts support and guide businesses in complying with tax laws through excise tax registration and regular excise tax advice in the UAE. We help you grow your business by guiding you through the entire tax process and providing you with better strategies.

BESTAXCA Accounting and Bookkeeping Services LLC provideCFO services, auditing services, accounting and bookkeeping services, accounting software services with excellent customer service, Due diligence services and VAT consultancy services in Dubai. are handled in a timely and professional manner, in a way that suits them.