Page 28 - Premier Brains Global -Doing Business in UAE (Low Res)

DOING BUSINESS in UAE

E-Billing System

The UAE’s Ministry of Finance (MOF) has
recently announced the project of “E-billing
System” which will be an advanced
electronic billing system that will automate
the procedures for filing tax returns with
the tax system, ensuring compliance with
regulations and to minimize tax-evasion
cases. The project is stated to consist of
different phases and targeted to complete
by July 2025.

Businesses engaged in the import,
production, or sale of excise goods are
Excise Tax
required to register for excise tax purposes
and comply with the tax regulations. They
Excise tax is an indirect tax levied on specific need to maintain proper records, submit
goods considered to be harmful to health or regular tax returns, and pay the applicable
the environment. The United Arab Emirates excise tax. Excise tax registration is required
(UAE) implemented an excise tax on certain for anyone who imports, produces, or
goods, including carbonated drinks, sugary stockpiles excisable goods in the UAE, or
drinks, energy drinks, and tobacco products. releases excisable goods from designated
zones for consumption in the UAE. There is
The excise tax was introduced in the UAE on no threshold limit, and any person involved
October 1, 2017. It was part of the UAE’s efforts or forming the intention to be involved in
to diversify revenue sources and promote excisable activities must notify the FTA
healthier lifestyles by discouraging the within 30 days of the end of the month in
consumption of harmful products. which they were involved or formed the
intention to be involved. There are certain
Taxable Goods rates and limited exceptions for registration such as
qualifying infrequent importations of excise
compliance
goods.
The excise tax in the UAE was initially
introduced on carbonated drinks, tobacco
Excise tax is chargeable by reference to
products and energy drinks and later
the tax base of the goods concerned. The
sugary drinks were also included in it. The
tax base is either the designated retail
rate of 50% is applied on carbonated drinks
price of the goods, a minimum price set by
and on any product with added sugar or
regulation, or a list price determined and
other sweeteners, while the 100% is applied
published by the FTA.
on tobacco products, energy drinks, liquids
used in electronic smoking devices and
Excise tax returns are filed online and mostly
tools and electronic smoking devices.
on monthly basis unless an extended
timeline is agreed with the FTA, the return

28