UAE: VAT and Excise Tax - In-House Community 2025

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  1. Click ‘Get Form’ to open it in the editor.
  2. Begin by entering your business details in the designated fields, including your trade name and registration number. Ensure accuracy as this information is crucial for tax compliance.
  3. Proceed to the VAT section where you will input your taxable supplies and any exempt supplies. Use our platform's calculation tools to assist in determining the correct amounts.
  4. In the Excise Tax section, specify any excise goods you handle. This includes quantities and values, which are essential for accurate reporting.
  5. Review all entered information carefully. Utilize the editing features to make any necessary adjustments before finalizing your submission.
  6. Once satisfied, sign the document electronically using our platform’s signature feature, ensuring a secure and valid submission.

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Businesses that import, produce, release, or stockpile excise goods are liable to pay excise tax. This also includes entities that handle the warehousing of such goods. When is excise tax payable? Excise tax shall be payable while submitting the return at the end of each tax period.
Exempted VAT Supplies in UAE Explained Financial services (where an explicit fee is not charged, e.g., interest on loans) Residential property rentals (excluding commercial properties) Local passenger transport (such as buses and taxis) Bare land (undeveloped land sold without any structures)
Where the valuation used by the BOC is by volume or quantity, the VAT basis is the landed cost-plus excise taxes, if any. Certain transactions are zero-rated or exempt from VAT.
An excise tax is a specific type of tax that is levied on certain goods or services at the time of their purchase. Unlike international taxes, excise taxes are applied within the boundaries of a specific government.
UAE VAT rate is 5%. However, there are two more categories: nil-rated supplies (0%) and exempt supplies, which are out of scope under the current VAT Law.
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People also ask

An excise is a duty not a tax whereas Sales Tax or VAT is a tax. An excise is a per unit tax i.e. it costs a specific amount for a volume or unit of the item purchased, whereas a Sales Tax or Value Added Tax (VAT) is an ad valorem tax and directly proportional to the price of the good.
an excise is typically a per unit tax, costing a specific amount for a volume or unit of the item purchased, whereas a sales tax or value-added tax is an ad valorem tax and proportional to the price of the goods, an excise typically applies to a narrow range of products, and.
Tax is a broad term that refers to various types of imposed charges. VAT, on the other hand, is a specific type of tax that is applied to the value added in the production and distribution process of goods and services. It is a tax on the final consumption of goods and services and is usually paid by the end consumer.

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