The UAE Federal Tax Authority (FTA) has officially published the Excise Tax Guide (ETGP1) – Taxable Person Guide (Part 1), offering much-needed clarity on who qualifies as a taxable person under the Excise Tax regime and what registration and compliance obligations apply.
This guide is a critical resource for businesses involved in the import, production, stockpiling, or release of excise goods, helping them navigate their tax responsibilities with confidence and accuracy.
Purpose of the Excise Tax Guide (ETGP1)
The newly released guide aims to simplify the understanding of Excise Tax laws by clearly explaining:
- Who is considered a taxable person
- When Excise Tax registration is mandatory
- Key compliance obligations after registration
- Responsibilities related to reporting, record-keeping, and payments
By outlining these elements in a structured manner, the FTA ensures that businesses can comply proactively and avoid unnecessary penalties.
Who Is Considered a Taxable Person?
According to the guide, a taxable person is any individual or entity that conducts activities related to excise goods, including:
- Importing excise goods into the UAE
- Producing excise goods locally
- Stockpiling excise goods in the UAE
- Releasing excise goods from a designated zone
Businesses operating in sectors such as tobacco, sweetened beverages, energy drinks, and other excise-regulated products must carefully assess whether their activities fall under these categories.
Excise Tax Registration Requirements
The guide highlights scenarios where mandatory registration is required, as well as cases where voluntary registration may apply. It also explains:
- Registration timelines
- Required documentation
- Consequences of late or non-registration
- Administrative penalties for non-compliance
Timely registration is crucial, as failure to comply may result in significant fines and operational disruptions.
Ongoing Compliance Obligations
Once registered, taxable persons must fulfill several ongoing obligations, including:
- Filing Excise Tax returns accurately and on time
- Paying excise tax dues within prescribed deadlines
- Maintaining proper records and documentation
- Ensuring correct tax treatment of excise goods
The guide emphasizes that strong internal controls and accurate accounting practices are essential for sustained compliance.
Why This Guide Is Important for Businesses
The Excise Tax Guide (ETGP1) serves as a practical reference for businesses to:
- Understand their legal obligations
- Reduce the risk of penalties and audits
- Improve tax governance and compliance systems
- Operate with greater confidence under UAE tax laws
For businesses already managing VAT or Corporate Tax, excise tax compliance adds another layer that requires expert attention.
How The Capital Zone Can Support You
At The Capital Zone, we assist businesses with:
- Excise Tax registration and deregistration
- Compliance assessment and advisory
- Excise Tax return filing and reporting
- Accounting and record-keeping for excise goods
- Ongoing tax compliance support
Our experts ensure that your business aligns fully with the FTA’s latest guidelines while minimizing compliance risks.
Conclusion
The release of the Excise Tax Guide (ETGP1) is a positive step toward transparency and compliance in the UAE’s tax framework. Businesses dealing with excise goods should review this guide carefully and take timely action to meet their obligations.
If you need professional assistance navigating Excise Tax requirements, The Capital Zone is here to help.
