The Federal Tax Authority has started the executive procedures of the Council of Ministers' Decision on “Selective Commodities, Tax Rates and How to Calculate the Selective Price”, which was issued during the month of August. In addition, tobacco and sweetened beverages, which will come into force at the beginning of January 2020, in addition to tobacco and its products, energy drinks and soft drinks, which began to apply the selective tax from the beginning of October 2017.
The new decision comes as part of the government's continuous efforts to promote healthy lifestyles for the UAE society to reduce diseases related to the consumption of goods harmful to human health within the framework of the UAE Vision 2021, which aims to be the UAE among the best countries. the world.
As a first stage, the Authority called upon all producers, importers and stockpeople of sugar sweetened with added sugar to register with the Authority for the purposes of selective tax, and abide by the decision aimed at the public interest, pointing out that the selective tax is an indirect tax imposed on certain harmful goods to reduce consumption.
She explained that within the framework of the basic procedures for the implementation of the Cabinet's decision to expand the scope of selective goods, the Federal Tax Authority has modernized and developed the electronic registration system, which is characterized by ease and speed of procedures, to add goods covered by the new decision of the Council of Ministers in this regard, and to facilitate the business sectors concerned to complete the registration process In the selective tax system without hindrance.
In addition to the updates that have been made to the registration systems, the TRA has implemented a new mechanism for registering selective goods as of August 18, and called upon all concerned business sectors, including producers, importers and stockpiles of selective goods, to register all these goods that are handled through the system. the new.
In the first phase, the Authority called on all concerned with sweetened beverages to be registered in the new system launched by the Authority, after being registered in the system as subject to selective tax, where it will be followed by the announcement of the second phase, which includes the registration of those concerned with electronic smoking devices and liquids.
According to the decision, the Commission shall determine the procedures necessary to prove the classification of any product to ensure that it is a selective commodity. The Commission may require the person to provide documents, laboratory or other proofs that it determines to prove and determine the content of the product.
The Director General of the Federal Tax Authority, Khalid Ali Bustani, said that «the Authority has developed a comprehensive multi-track plan, in order to ensure the implementation of the decision of the Council of Ministers, in addition to the updates that have been made to the registration systems, and the application of the new mechanism for the registration of selective goods, Guidance and guidelines explaining the mechanisms and criteria for applying the selective tax on electronic smoking devices and instruments, the liquids used in those devices, and drinks sweetened with added sugar, as well as the simplified methods necessary to complete the registration process, whether to subject Or products, for the registration of taxable and time period.
Sweetened drinks
The Federal Tax Authority confirmed that the definition of sweetened beverages is excluded from a group of goods, including at least 75% milk content of the ready-to-drink content and at least 75% milk substitutes. Ready to drink, infant formula or infant foods.