Articles

How Does Excise Tax in Dubai Work?

by Louie Cooke Analyst

In Dubai, there is a very strict collection of Excise Tax and the government is very open about this fact. The government does not permit any business to be registered without a license from the Department of Finance.

Dubai is basically an economic development hub and as such it has become the second biggest financial center of all the Middle Eastern countries. The federal government of UAE has absolute exclusivity in terms of its taxation system and the government also has no monopoly on issuing new tax laws. But the state government has not issued any new tax laws, leaving every emirate to implement the taxes on individuals and businesses living here.

Excise Tax UAE is a tax which is imposed upon the production, consumption or importation of any good and it is collected by the Federal Tax Authority. The duty that is collected is then divided amongst the various tax authorities or departments of the UAE government. The other duties that are collected from individuals, firms and local municipalities are known as Excise Duty. The duties that are collected from international sources like duty-free shops and duty-free goods are called Duty on Import.

The federal tax authority is responsible for imposing Excise tax agent UAE. There is an independent duty on imported goods but the duty on duty-free goods are collected by the Department of Finance. There are some exemptions to this. This duty is collected on almost all goods that are imported. There are some special rules for items which are exempt from duty.

Tax on alcohol is different from the tax on fuel. The duty on alcohol is paid on the amount of alcohol that is consumed and on the quantity that is imported. So alcohol is treated differently from other imports.

The duty on duty-free goods can be deducted and then tax on the imported product is added. The duty on alcohol is often more than the duty on other imported products. So people who import duty-free goods in Dubai may find that they have paid excise duty on alcohol for a number of years.

Tax on alcohol is collected only in the city of Dubai. There are customs and excise offices in all the other emirates but they are not connected with tax collection. It is usually the duty on alcohol that you find yourself confused and trying to find out how much duty has been paid and what duties have been paid.


The duty on imported goods is less than the duty on duty-free goods. The duty on alcohol is collected by the duty on imported goods. So duty on duty-free goods is collected by the duty on duty-free goods. You will need to visit the duty officer for the collection of duty on duty-free goods.

Duty on duty-free goods cannot be exported to foreign countries. If you want to leave these goods in another country then the duty on duty-free goods are collected by the duty on imported goods. If you leave duty free goods in another country and then export them to Dubai, then the duty on duty-free goods are charged to you. However, if you want to sell the goods outside Dubai and then the duty on duty-free goods is charged to you. There are also certain other items that have been categorized under duty-free.

Duty-free goods are goods that are not liable for duty when imported when duty is charged on them but not collected when exported. Goods that are liable for duty when imported, but not collected when exported are known as duty paying goods. Examples of duty paying goods that are imported from other countries are clothes, electronic equipment, jewelry, and similar commodities.

The duty that is paid on duty-free goods is collected by the duty on imported goods is known as a duty. Duty on duty-free goods cannot be deducted from the income of an individual. Goods that are liable for duty when imported, when duty is charged on them but not collected when exported, are called Excise Tax Agent UAE.

Goods that are liable for duty when imported, when duty is charged on them but not collected when exported are known as duty collecting goods. Goods that are liable for duty when imported, when duty is charged on them but not collected when exported are called duty collecting goods. Examples of duty collecting goods include clothes, electronic equipment, jewelry, and similar commodities. The duty on duty-free goods cannot be deducted from an individual's income.

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About Louie Cooke Innovator   Analyst

11 connections, 0 recommendations, 90 honor points.
Joined APSense since, June 16th, 2020, From Florida, United States.

Created on Aug 14th 2020 03:05. Viewed 317 times.

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