Excise tax is the kind of tax is an indirect tax that usually charged on the sales of a particular commodity. This kind of tax is not directly paid by the actual user of an item; rather it is levied on the manufacturer or merchant of a particular product by the Internal Revenue Service. Most of the merchants of a consumer product ultimately pass on this tax on the target customers by including it into the actual price of the products sold by them. The following are some of the most important details about this kind of Tax in UAE:-
How to register:-
A business can register for the Excise Tax in UAE by visiting the E-service section of the FTA website. First of all, it needs to sign up and create an account. You case find more details about the Excise tax registration by going through the Excise tax registration user guide.
Goods included in this tax:-
In UAE excise tax is applicable on all kinds of excise goods that can be discussed as follows:-
These include all kinds of aerated beverages except the unflavored aerated water. It is also levied on carbonated drinks such as concentrates, powder, gel or extracts that are intended to be transformed in an aerated beverage.
Energy drinks include all the beverages that are rich in stimulating substances and aim to improve the mental as well as physical stimulation of a human being. Caffeine, Taurine and Guarana are of the most prominent ingredients of these beverages. These drinks consist of all the substances that have the same effect as the above-mentioned substances. Some concentrates, powders, gels or extracts are also included in this category.
Tobacco and its by-products:-
This tax is levied on most of the substances list in the schedule 24 of the GCC Common Customs Tariff include Tobacco and it’s by-products that are extremely injurious to the human health.
The main purpose of this tax:-
The government of UAE is considered to levy the excise tax with an aim to bring down the consumption of unhealthy as well as harmful commodities by the locals, besides increasing the revenue from these items that can be finally used for the overall welfare of the general public.
The rate of excise tax:-
The rate of excise on some of the health hazardous items include as follows:-
50 percent of the actual price in case of Aerated drinks.
100 percent of the actual price in case of tobacco and energy drinks.
The above mentioned are some of the most prominent details about the Excise tax in UAE. You can find some more details in this regard on the internet.