Value-Added Tax (VAT) Services in Dubai, Abu Dhabi, Sharjah & UAE

What are Excise Tax Services?

Excise tax is an indirect tax imposed on specific commodities that are often harmful to the environment or human health. These goods are referred to as “excise goods.”

Excise tax is applied to certain goods at applicable rates when carrying out specific Activities. It includes

Tobacco and tobacco products
Liquids used in electronic smoking devices and tools
Electronic smoking devices and tools
Carbonated drinks
Energy drinks
Sweetened drinks

Businesses involved in importing, producing, or stockpiling these excise goods, or Releasing them from a designated zone in the UAE, must register for excise tax.

At Evas Constantin, we offer comprehensive excise tax related compliance services tailored for producers, importers, and the warehouse keepers of excisable goods, including:

Assistance with submitting excise declarations and filing of returns with the Federal Tax Authority
Assistance with Excise tax registration and deregistration for importers, producers and stockpilers of excisable goods
Warehouse keeper and designated zone registration and deregistration
Registration and renewal of designated zone entities
Assistance with Excise Tax audits conducted by the Federal Tax Authority
Excise tax Health check – Review of historical return
Assistance with the filing of excise refund claims with the Federal Tax Authority
Excise tax clearing company registration (TINCE)
Performing stock count of excisable goods and issuance of a report as per the
Request by the management.

Why choose Evas Constantin?

As authorized tax agents approved by the federal tax authority of the UAE, Evas Constantin is your trusted partner for navigating the UAE’s tax landscape. We provide expert guidance to help you plan, manage, and adapt to evolving tax regulations effectively.

Do you need a trusted accountant to guide you in the right direction?

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Frequently asked questions

Can a person register for UAE VAT based on taxable expenses?

Yes. A person can apply for VAT registration voluntarily if the taxable expenses exceed AED 187,500 in the last 12 months or if he expects that his taxable expenses will exceed AED 187,500 in the next 30 days.

Can a taxable person making only zero-rated supplies but having import of goods/services apply for VAT registration exception?

No. A taxable person engaged in making only zero-rated sales can apply for VAT registration exception.

What are the timelines for mandatory VAT registration and De-registration?

VAT registration must be applied within 30 days from the date when the taxable supplies and imports exceed the mandatory registration threshold of AED 375,000 during previous 12 months or from the date the taxable person expects to exceed the threshold in the next 30 days.

VAT deregistration must be applied within 20 business days from the date the taxable person stops making taxable supplies or if the value of taxable supplies, imports and taxable expenses falls below the voluntary registration threshold of AED 187,500.

Can a taxable person issue simplified tax invoice?

A taxable person may raise a simplified tax invoice only where either the Recipient of Goods or Recipient of Services is not a Registrant or where the Recipient of Goods or Recipient of Services is a Registrant and the Consideration for the supply does not exceed AED 10,000.

Are there any fees to be paid to the Federal Tax Authority for private clarification?

Yes. If the request is for a single clarification, the fees is AED 1,500 and for multiple tax clarification, the fees is AED 2,250.

What would be the VAT treatment on discounts?

For discounts and rebates provided along with the sales, VAT should be calculated on the discounted sale price. If any discounts are provided after the completion of sale, a credit note must be issued, and the output VAT should be adjusted accordingly in the VAT return.

Can we avail VAT on residential properties?

Yes, Input Tax credit on the first supply of a new residential building within three years of completion can be availed as the first supply shall be treated as a zero-rated supply. Input credit on subsequent sales or leases of residential buildings cannot be availed since the subsequent supplies are categorized as exempt supplies.777

Is there any list of Designated zones issued by FTA?

Yes. FTA has released the list of Designated zones for the purposes of the Federal Decree-Law No. 8 of 2017 on Value Added Tax and the access to the list is Designated Zones – 21 09 2021 sep21.pdf (tax.gov.ae).

Are there any rules for conversion of foreign currency to UAE Dirhams as per VAT Laws?

If the supply/import is in a currency other than the UAE Dirham, it shall be converted into the UAE Dirham using the full exchange rate published by the Central Bank on the date of supply. If exchange rate is not available for a particular day, rate as on the previous day shall be used for conversion.

What is the timeline for export of goods to claim Zero rate?

In order to apply the zero rated VAT on Export of goods, along with the other stipulated conditions, the Goods shall be physically exported outside the UAE or be put into a customs suspension regime in accordance with GCC Common Customs Law within 90 days of the date of the supply.

Whether any income from investments outside UAE is taxable?

The income from investments in shares outside the UAE, such as dividends, capital gains, and interest, is generally considered outside the scope of UAE VAT. This means that such income is not subject to VAT in the UAE.
The income generated from investment properties located outside the UAE is also considered outside the scope of UAE VAT. This includes rental income, capital gains, and any other earnings derived from such properties.

In both the above cases, the principle of “place of supply” is applied, and since the investments and property is located outside the UAE, the income generated from these investments is not covered within the purview of UAE VAT.

Can output tax adjustments be done for bad debts?

Yes, output tax adjustments can be done for bad debts under UAE VAT regulations if all the following conditions are met:

Goods and Services have been supplied and the Due Tax has been charged and paid.
Consideration for the supply has been written off in full or part as a bad debt in the accounts of the supplier.
More than 6 months has passed from the date of the supply.
The Registrant supplier has notified the Recipient of Goods and the Recipient of Services of the amount of Consideration for the supply that has been written off.

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