Dubai: The Federal Tax Authority (FTA), the government entity responsible for implementing and collecting federal taxes in the UAE, said it will launch the registration process for excise tax on September 17, 2017.

Businesses will be required to register via the FTA’s website, the Authority said in a statement on Thursday.

The decision comes ahead of the October 1 implementation of nationwide excise taxes, which will be charged on tobacco products, carbonated drinks (with the exception of sparkling water), and energy drinks. The tax will be at a rate of 100 per cent on tobacco products and energy drinks, and will be at a rate of 50 per cent on carbonated drinks.

In its statement, FTA said it will be assisting businesses in the UAE with regards to financial and technical systems to ensure readiness to comply with tax regulations. This covers both the excise tax in October 2017, and the Value-Added Tax (VAT), which will be implemented starting January 2018.

Excise taxes are payable by the individual or entity producing or importing products affected by the tax. It also affects individuals and entities that stock these products if they have not already been taxed.

Taxable persons are required to settle their taxes within 15 days of the end of each month.

“The registration process for businesses eligible for excise tax is an important and critical juncture in implementing the federal tax system in the UAE. It is the first step towards complying with the tax procedures and laws, and an opportunity for UAE-based businesses to adapt their internal financial and administrative systems to the advent of this major step forward for the maturing national economy,” Khalid Al Bustani, director general of FTA, said in a statement.

He added that the Authority is offering support and guidance to UAE-based businesses in the registration process to facilitate compliance.

Excise tax in the UAE is expected to generate around Dh7 billion in revenues annually for the federal budget. The tax will be effective in duty-free shops at airports, but only on passengers arriving to the UAE rather than those departing.