Overview — Excise Tax & Returns
Excise Tax in the UAE applies to specific goods that are considered harmful to human health or the environment. It is a significant compliance area for businesses dealing in excisable products such as carbonated drinks, energy drinks, tobacco and tobacco products, and specific sweetened products. Businesses registered for excise must file excise returns and pay the due tax to the Federal Tax Authority (FTA) on time.
Who needs to file Excise Returns?
Any business that manufactures, produces, or imports excisable goods into the UAE, or stores/handles them domestically, must comply with excise regulations. Typically this includes:
- Manufacturers of excisable products
- Importers of excisable goods
- Distributors and wholesalers
- Retailers who handle excisable stock
Documents & Records Required
- Commercial invoices and customs documentation
- Purchase orders and sales invoices
- Production/consumption records and batch reports
- Stock movement logs
- Contracts with suppliers and transporters
- VAT and excise ledgers, accounting records
How to Prepare & File Excise Returns
- Maintain accurate excise product records and valuations
- Classify goods correctly under excise rules
- Calculate excise due for the tax period (based on production, import, or adjustments)
- Prepare the excise return using the FTA portal and supporting schedules
- Pay the tax due to the FTA by the return due date
- Keep proof of payment and submission for audit purposes
Common Issues & How We Help
- Incorrect classification — we help classify products correctly to avoid penalties
- Under/over reporting — we reconcile records to ensure correct tax liability
- Mismatched documentation — we assist in organizing and validating supplier documents
- Late filings/payments — we provide calendar reminders and submission services
- FTA disputes — represent and assist in correspondence with the FTA
Penalties & Compliance Risks
Non-compliance with excise rules can attract fines and penalties. Common penalties include:
- Fines for late filing and late payment
- Penalties for incorrect classification or under-declaration
- Detention or confiscation of goods in customs cases
Our Process
We follow a practical and documented process to prepare your excise returns:
- Initial assessment and documentation review
- Record reconciliation and excise calculations
- Drafting return schedules and internal review
- Online filing and payment support
- Post-filing audit support and record retention guidance
Need help filing Excise Returns?
Unioncore Accounting & Bookkeeping Services Co. provides end-to-end excise return services — from record keeping to filing and FTA compliance. Contact us for a free consultation.
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