A follow -up on Excise Tax
Further to our last update on Excise Tax, the UAE Federal Tax Authority (FTA) conducted an awareness workshop on the subject on September 20, following the issue of two cabinet decisions on Excise Tax on September 27, 2017 – as follows:
— Cabinet Decision no (37) of 2017 on the Executive Regulation of The Federal Decree-Law No (7) of 2017 on Excise Tax
— Cabinet Decision No (38) of 2017 on Excise Goods, Excise Tax Rates and the Method of Calculating the Excise Price
The FTA also issued the taxable person guide for Excise Tax (‘Guide’)
The Cabinet Decision No (38) and the Guide, reiterates that the Excise Tax Law will come into effect in the UAE from October 1, 2017.
As per a recent press release by the FTA, individuals and businesses must document and, if necessary, declare excise goods, by the end of September 30, 2017. The inventory must be audited and approved by an accredited auditor (such as KPMG) and the taxable person is required to learn about tax-related legislations and procedures to know their rights and responsibilities.
In addition to the above, the FTA has also issued an excise goods price list, which contains the minimum Retail Sales Price acceptable by the FTA for many Excise goods being sold in the UAE. The document also provides indicative classification of those products as carbonated or energy or tobacco products.
It should be noted that the document is not fixed and may be subject to changes by the FTA.
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