Excise Tax (ET)

excise tax

What it is

Excise tax (ET) is an indirect tax charged on specific goods or services, usually of high social cost, such as cigarettes.

It is mainly set to urge people not to consume products that have a harmful impact on their health and the environment. Therefore, the generated revenues will contribute to the development of community services.

ET in Dubai, UAE will come into effect on October 1st, 2017. The detailed tax rates determining the excise price calculation method will be determined by the UAE Cabinet at the suggestion of the Minister of Finance.

 

How it affects your business

If you are a manufacturer, importer, exporter, or involved in transporting or storing excisable products, then your business will be liable to register for excise tax.

Excise tax in Dubai, UAE will reach 100% on tobacco and energy drinks and 50% on fizzy drinks. It will be imposed on merchants, who in turn will pass it to the customer by including it in the advertised price of the service or product.

Business’ ET-related responsibilities:

  • Submit periodical revenues
  • Pay the excise tax owing to the authorities
  • Keep detailed records concerning excise tax

Why XB4

At XB4, we have a dedicated team of experts with extensive experience in the field to help you through the transition. As a reliable ET consultant in Dubai, UAE, we will provide you with the needed knowledge to reduce the risk of non-compliance, in addition to:

  • Helping your business register to excise tax
  • Managing your excise tax audits
  • Assisting you with compliance obligations
  • Providing training on excise tax
  • Keeping your business up to date with legislative updates
  • Helping you avoid any unnecessary costs by structuring your transactions and detecting saving opportunities

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