How to Register for Excise Tax in UAE: Step-by-Step Guide

As the UAE continues to position itself as a globally competitive business hub, excise tax has emerged as a key element of its tax system. Introduced in 2017, this tax forms part of the nation’s efforts to support public health goals and align with international tax standards.

Any businesses dealing with excise goods must comprehend and complete the Federal Tax Authority (FTA) registration process. Yet many companies delay this step, resulting in compliance concerns, penalties, and operational delays.

This guide by Arabian Wingz provides a simple step-by-step guide on how to achieve excise tax registration Dubai and across the UAE, so that your company remains completely compliant with all FTA regulations.

What is Excise Tax in the UAE?

Excise tax is a selective tax applied on specified commodities that are considered damaging to public health or the planet. It is a single-stage tax, meaning it is typically applied only once at the point of production, import or when the goods are released for consumption. This is different from Value Added Tax (VAT), which is applied at every point in the supply chain.

The primary goal of excise tax is to discourage the consumption of these products by making them more expensive for consumers. The government then uses the money raised to pay for public services like healthcare, environmental projects and others to make a more sustainable and healthier society.

The current list of excise goods subject to taxation includes –

• Tobacco and Tobacco Products
• Carbonated Drinks
• Energy Drinks
• Electronic Smoking Devices and Liquids
• Sweetened Drinks

Why is Excise Tax Registration Important?

Proper tax registration in UAE is the first step toward legal and financial compliance. Businesses that are required to register for excise tax but fail to do so can face significant administrative penalties and fines from the FTA. These fines can be high and have a negative effect on a business’s reputation and financial stability. The fines can be for various infractions, including –

• Failure to register on time – This can result in a significant one-time penalty.
• Failure to file tax returns on time – Penalties apply for each late return.
• Late payment of tax due – Financial penalties are based on the sum of unpaid tax.

By completing your UAE tax registration correctly and on time, you protect your business from these risks and build a strong foundation of trust and reliability with the national authorities.

Who Needs to Register for Excise Tax?

The obligation to register tax UAE for excise tax falls on any individual or business engaged in the following activities related to specific goods –

• Importing excise goods into the UAE.
• Manufacturing excise goods for UAE consumption.
• Stockpiling excise items  in the UAE under certain conditions.
• Acting as a warehouse keeper in an excise warehouse or authorized zone.

There is no minimal requirement for UAE tax registration. If you fall into any of the above categories, you are legally required to register, regardless of the volume or value of the goods.

The Role of the FTA (Federal Tax Authority)

The Federal Tax Authority (FTA) is the government entity that is responsible for managing, collecting and enforcing taxes in the UAE, including excise and VAT. All excise tax-related activities, from initial registration to filing returns and making payments, are managed through the FTA’s official digital platform, known as EmaraTax.

The FTA has established a clear, user-friendly online process to facilitate tax compliance for all businesses. The EmaraTax portal is the central hub where you will submit your registration application, upload necessary documents and manage all your tax-related affairs.

Documents Required for UAE Tax Registration

To ensure a smooth and efficient registration process, it is vital to have all the necessary documents prepared in a digital format before you start. The following is a general list of documents you will need to upload to the EmaraTax portal –

• Trade License
• Authorized Signatory Details
• Company Information
• Bank Account Details
• Customs Registration (for importers)
• Details of Excise Goods
• Owner Details

Step-by-Step Excise Tax Registration Process

The entire registration process is conducted online via the EmaraTax portal. Here is a clear, step-by-step guide to navigate the application successfully –

1. Create an Account on the EmaraTax Portal  

If you don’t already have one, the first step is to create an account on the FTA’s e-services platform. You will need to submit your company information, a current email address and password that’s secure. The system will email you a confirmation link to activate the account.

2. Log in and Access the Excise Tax Registration Form –

When your account is active, log in to the EmaraTax portal. Navigate to the “Taxable Person” dashboard and select the option to register for Excise Tax. This will open the online application form.

3. Fill in Company Details and Upload Documents 

The application is divided into several sections. You must complete each one carefully and accurately.

• Entity Details – Enter the legal name organizational structure and trade licensing details of your company. 

• Authorized Signatory – Fill in the details of the authorized signatory and upload the required proof of authority.
  
• Business Activities – Specify which excise goods you handle and your role (e.g., importer, producer). Provide detailed information about the products.
  
• Customs Details – Enter your customs registration number and other relevant information for importing businesses.
  
• Bank and Contact Details – Provide your corporate bank account and primary business contact information.

4. Review and Submit for Approval 

Before submitting, meticulously review all the information and uploaded documents. Ensure everything is correct and complete to avoid delays. Once satisfied, submit the application. You will be given a tracking reference number.

5. Await Approval 

The FTA is going to examine your application. This process can take several days. They may contact you to request additional information or documents. Your EmaraTax dashboard allows you to view the status of your application. You will get your Excise Tax Registration Number (TRN) once your application has been approved.

What Happens After Registration?

At this stage, several important responsibilities begin to apply to ensure you meet all regulatory requirements, which are as follows –

• Start Filing Excise Tax Returns – After registration, your business must begin submitting monthly excise tax returns via the FTA portal. These returns must include details of all excise goods that have been imported, produced, stockpiled or released into the UAE market.

• Maintain Records – Businesses must maintain complete and accurate records of all excise-related transactions, including invoices, imports and warehouse data. These documents must be accessible for FTA audits or reviews and kept for a minimum of five years.

• Renew Registration When Needed – In case there are considerable changes in your business activities such as a new warehouse site, expansion into new excise products or a shift in legal form—you need to renew your registration with the FTA.

• Stay Compliant to Avoid Penalties – Remaining compliant with excise tax regulations is critical to avoid severe penalties, including fines or trade license suspension. It’s better to stay updated on FTA rules, file returns on time and maintain accurate records to ensure smooth operations.

Common Mistakes to Avoid

These are a few of the most typical errors that companies make when registering for excise taxes –

• Not registering on time – Some businesses start dealing with excise goods before completing their registration. This is against the law and can lead to serious penalties. Always register before you begin any activity involving excise goods.

• Missing or incorrect documents – Many applications are held up due to missing documents or improper documents. Ensure your trade license, Emirates ID, passport copy and other documents are in proper order and valid when applying.

• Misclassifying excise goods – Sometimes companies classify products that are not excise-related or fail to put items that are excise. This can result in incorrect tax payments or penalties. Always ensure your goods are listed as excise goods.

• Delayed filing – Once registered, companies have to file excise tax returns monthly. If you miss the deadline or submit incorrect returns, you may face fines. It is better to set reminders and keep your records organized to stay on track.

Need Help? Contact a Tax Consultant

The process of tax registration in UAE, especially for excise tax requires a full understanding of the legislation and precise attention to detail. For many businesses, particularly those new to the UAE market, find it beneficial to enlist the help of a professional tax consultant. An expert can –

• Save time by managing the entire registration process easily.
• Prevent errors that could lead to delays or penalties
• Ensure full compliance with current and evolving FTA rules and regulations
• Provide ongoing support for excise tax return filing, record-keeping and renewals

At Arabian Wingz, we make excise tax registration simple, fast and fully compliant. With expert guidance, hands-on support and deep knowledge of FTA regulations, we ensure your business meets all legal requirements. Contact Arabian Wingz today and let us handle the tax difficulties while you focus on developing your business.

Also Read: How to Register for VAT in Dubai, UAE: Step-by-Step Guide

FAQ’s

What products are subject to excise tax in the UAE?

Excise tax applies to specific goods that are considered harmful to public health or the planet as defined by Cabinet Decision No. 52 of 2019. These include –

Sweetened Drinks

Tobacco and Tobacco Products 

Carbonated Drinks 

Energy Drinks 

Electronic Smoking Devices and Liquids 

Is excise tax registration mandatory for free zone companies?

Yes, if your free zone company deals with excise goods by importing, producing or storing them in a way that makes them taxable in the UAE, then you must register for excise tax.

How long does the registration process take?

Once you submit a complete and correct application, the FTA usually takes a couple of business days to review and approve it, provided all documents are complete.

What happens if I don’t register on time?

If you don’t register for excise tax when you’re supposed to, the FTA can impose a penalty up to AED 10,000 for late registration and possible business restrictions.

Can I update my details after registration?

Yes, you can update details like business activities, excise goods or contact information via the EmaraTax portal. Notify the FTA promptly of changes to ensure compliance.