Last date for filing excise tax returns and paying dues in UAE

Excise duty was implemented by the UAE on October 1. The excise tax provision requires registered businesses to file monthly returns on or before 15th of every month. The last date for UAE businesses for filing their October tax returns is November 15, 2017. The Federal Tax Authority has requested companies to file their returns on time, otherwise, penalties would be levied.

The excise duty tax is applicable to the following items:

• Carbonated drinks – 50% duty
• Tobacco products and energy drinks – 100%

The excise duty returns are required to be filed by the 15th of every month for the previous tax month. The UAE tax law has the provision of administrative penalties for non-compliance with excise deadline rules.

Khalid Al Bustani, director-general of the Federal Tax Authority, said, “Since the beginning of November, businesses registered for excise tax have been consistently complying with their requirements and deadlines, filing their tax returns on time. We urge those who haven’t done so yet to file their returns before the deadline of November 15, 2017, and settle the payable tax stated in the submitted excise tax return, in order to fulfill their obligations according to the tax procedures in the UAE.”

Penalties for Excise Tax Law Violations

The Federal Law No. (7) of 2017 mentions the violations relating to tax procedures in the country and Federal Decree-Law No. (7) of 2017 mentions excise tax violations.

The Cabinet Decision No. (40) of 2017 includes the administrative penalties for any of these tax law violations.

In case of delayed or no submission of tax returns within the given timeline, the registrant will have to pay a penalty of Dh1,000 for the first offense and Dh2,000 on repetition within 24 months.

If a taxable person fails to pay his/her due taxes, as mentioned in the tax return, within the specified timeframe, he/she will also have to pay a late payment fine of 2 percent of the due tax amount, within 7 days from the deadline, in addition to the penalty. If a taxpayer fails to pay the due tax amount even after the seventh day from the deadline, the late penalty applicable will be 4 percent of the unpaid tax, for one calendar month from the deadline. After that, a daily penalty of 1 percent will be charged on the due amount, subject to a maximum of 300 percent.

There is also a penalty on the submission of wrong/misleading data in the tax return. Businesses are required to provide the accurate data in their excise returns, otherwise, a fixed penalty of Dh3,000 will be charged in addition to a percentage based penalty of as much as 50% of the unpaid tax amount.

For More Please Visit Us HERE