What is the procedure for excise tax registration in uae?? In 2017, the excise tax registration in UAE was established across the country. Excise tax is an indirect tax imposed on certain commodities that are often damaging to human health or the environment. These items are known as "excise goods." The following definitions apply when determining whether a product is an excise good: ● Any aerated beverage, with the exception of unflavored aerated water, is considered a carbonated drink. Any concentrations, powder, gel, or extracts designed to be converted into an aerated beverage are also considered carbonated drinks. ● Energy drinks are defined as liquids that are promoted or sold as an energy drink and contain stimulant ingredients that provide mental and physical stimulation, such as caffeine, taurine, ginseng, and guarana, among others. Any substance that has the same or similar impact as the aforementioned substances is likewise included. Any concentrations, powder, gel, or extracts meant to be turned into an energy increasing drink are also considered energy drinks. ● All commodities listed in Schedule 24 of the GCC Common Customs Tariff are considered tobacco and tobacco products. ● Electronic smoking devices and tools liquids used in such devices, as well as sweetened drinks, are subjected to excise duty from December 1, 2019.
Excise tax rates The rate of excise duty is as follows, according to Cabinet Decision: ● 50% off carbonated beverages ● Tobacco goods are taxed at 100%. ● 100% on energizing beverages ● 100% on electronic cigarette gadgets ● Liquids utilized in such equipment and tools are taxed at 100%. ● 50% off any product that has added sugar or other sweeteners.
The reason for levying excise duty The UAE government is imposing an excise tax in order to curb consumption of unhealthy and dangerous goods while simultaneously increasing government revenue that can be spent on useful public services.
What impact will it have on consumers?