Excise tax returns should be submitted periodically, usually defined as a tax period. The Taxable persons can file their returns using the online services of the Federal tax authority portal on www.tax.gov.ae.The manual returns are not accepted. The online return form would have bi-lingual options in English and Arabic.
An Excise tax return is a record or a statement of the Excise paid during a month.
When to File Excise Returns?
The Executive Regulation of the Excise Decree-Law shall specify the Tax Period usually a month and the exceptional circumstances under which the Federal Tax Authority may amend the Tax Period.
The Taxable Person shall submit a Tax Return to the Authority at the end of each Tax Period within the timeframes and in accordance with the procedures specified in the Executive Regulation of this Decree-Law.
When to pay Excise Tax?
The Taxable Person shall settle theTax Due on the same date of submitting the Tax Return.
Any Person exempted from registration shall pay the Tax Due whenever importing Excise Goods.
Why filing of Excise Tax Returns is Important?
An Excise tax return is nothing but a formal way of reporting Excisetax paid during a specific duration, usually a month. An Excise tax return summarises goods imported, produced and excise tax paid which helps authorities/taxable persons in reconciling the tax paid in an event of an investigation, inventory reconciliations, tax audits etc.
The Delay in filing returns andnonfilingmay attract penalties by the Federal tax authorities.It is therefore recommended to file Excise tax returns, irrespective of the Excise tax paid.
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