Rbsaccounting company profile

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ANALYSIS OF THE EXCISE TAX PUBLIC CLARIFICATION
RELATING TO STOCKPILING OF EXCISE GOODS
KEY FACTS, COMPLIANCE OBLIGATIONS, ACTION POINTS
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WHO ARE STOCKPILERS
Any person who holds stocks of O Sweetened
drinks O Electronic smoking devices and tools. O
Liquids used in electronic smoking devices and
tools which are excess in quantity and excise
tax was not accounted for, the same shall be
regarded as a stockpiler and required to
register for excise tax.
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EXCISE RATES
EXCISE GOODS RATE
Tobacco and tobacco products 100
Electronic smoking devices and tools 100
Liquids used in electronic smoking devices 100
Carbonated drinks 50
Energy drinks 100
Sweetened drinks 50
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WHEN WILL THE PROVISION COME INTO EFFECT?
Federal Tax Authority has recently clarified the
responsibilities of Stockpiler in respect of
Excise Tax Law. The stockpiler provision will be
applicable from 1st of December 2019.
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CONDITION FOR STOCKPILER

1. Goods are held in free circulation in the UAE,
2. Intended to be sold in the course of business
   and
3. Excise Tax on those goods has not been
   previously paid.

They are excess excise goods.
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WHAT ARE EXCESS EXCISE GOODS?
Excise goods are considered to be excess excise
if they meet all of the following conditions

• The goods are owned by a person on December 01,
  2019

1

• The goods are acquired by the stockpiler prior to
  December 01, 2019

2

• The goods are intended to be sold by the person
  in the course of business and

3

• Quantity of excise goods owned gt the average
  monthly stock holding level held by the person

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CALCULATION OF EXCESS EXCISE GOODS
12 months Average Monthly Stock
Excise Stock as on 1st December 2019
gt
OR
2 Times of 12 Months Average Sales
gt
Excess Excise Goods

• Which ever is higher of the above.
• Average Monthly Stock ((Opening stock Qty
  Closing Stock Qty)/2)

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ARE YOU A STOCKPILER?
Get your books Audited (Stock Audit)
https//www.rbsacco unting.com/
Register under Excise
Yes
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CONTINUED.
Get your books Audited (Stock Audit)
https//w ww.rbsac counting. com/
then the Excise Tax collected must be
declared and paid via the respective Excise
Tax return
Register under Excise
Yes
Whether charged and collect Excise Tax on the
sale of such stock (in error)
No
Get your books Audited (Stock Audit)
https//www.rbsaccou nting.com/
No
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HOW CAN RBS GROUP HELP?
O Services related to Stockpiling O Physical
Verification of Excisable Stock O Issuance of
Audit Report for stockpiler / non stockpiler O
Identification of Products on which Excise Tax
will be applicable O Registration of Excise Tax
Warehouse Keeper Registration O Compliance O
Excise Tax advisory O Filing of monthly Excise
Return.
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NEED ASSISTANCE OR ADVICE?
Contact Sijin K Ravi Managing
Director rbs_at_rbsaccounting.com https//www.rbsacco
unting.com/ 971 50 175 5867 RBS Tax
Consultants RBS Abdulrahman Auditing Office no
909, Grosvenor Business Tower Barsha Heights,
Sheikh Zayed Road Dubai, PO Box 392523, United
Arab Emirates Tel [phone]
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www.rbsaccounting.com
This information contained herein is in summary
form and is therefore intended for general
guidance only. This publication is not intended
to address the circumstances of any particular
individual or entity. No one should act on such
information without appropriate professional
advice after a thorough examination of the
particular situation. This publication is not a
substitute for detailed research and opinion.
Before acting on any matters contained herein,
reference should be made to subject matter
experts and professional judgment needs to be
exercised. RBS Group will not accept any
responsibility for loss occasioned to any person
acting or refraining from action as a result of
any material in this publication.
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