Get ready to pay more for cigarettes, energy drinks from October 1

 Cigarettes, energy and soft drinks are going to be expensive as the UAE is all set to implement Excise Tax on October 1, 2017.
The Federal Tax Authority on Wednesday announced that the authority is all set to implement Excise Tax in the country from next week. 
On October 1, the excise tax will go into effect at a rate of 100 per cent on tobacco and energy drinks that include stimulants or substances that induce mental or physical stimulation, such as caffeine, taurine, ginseng and gaurana. The tax also will go into effect on soft drinks, at a rate of 50 per cent.
As per the Federal Decree-Law No (7) of 2017, Excise Tax will be charged on production of excise goods in the UAE, import of excise goods in the UAE, release of excise goods from a designated zone and stockpiling of excise goods in the course of conducting business. Excise tax available in a registered designated zone will not be charged excise tax until released from the zone.
The new law mandates that businesses must be registered via the Federal Tax Authority's interactive website. From October 1, any business not registered for tax is prohibited from conducting above activities in the country.
The authority also advised the businesses to keep records audited by an auditor certified in the UAE that excise goods stock available on October 1, 2017.
Below are important points about Excise Tax:
Price after Excise Tax
- 100% on tobacco products
- 100% on energy drinks
- 50% on carbonated drinks
Where Excise Tax will be charged
- Production of excise goods in the UAE
- Import of excise goods in the UAE
- Release of excise goods from a designated zone
- Stockpiling of excise goods in the course of conducting business
What businesses should need to know about Excise Tax
1. Keep records audited by an auditor certified in the UAE
2. Violations of the Excise Tax legislation will be subject to penalties
3. Excise goods in the registered designated zones will not be charged until released from the zone
4. A designated zone, either a fenced free zone or any warehouse in the UAE, and a warehouse keeper may be registered from October 1, 2017
5. Businesses will have to registered themselves for Excise Tax
6. Every person registered for Excise Tax will have to submit a return for all transactions within the tax period (one month) within 15 days after the tax period
7. A producer of Excise goods will need to complete a monthly declaration stating the excise goods produced, the quantity and the destination
-   business@khaleejtimes.com
 
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