The Federal Tax Authority (FTA) has warned businesses to file their excise tax returns before the deadline, or face hefty fines.
Last month, the UAE introduced an excise tax which saw the price of tobacco products and energy drinks rise by 100 per cent, and sugary carbonated drinks by 50 per cent.
Businesses must file their returns for the previous tax period before the 15th of every month, with the first collection due to take place on Wednesday.
Those who fail to submit their returns on time will be subject to an automatic Dhs1,000 penalty for the first offence, and Dhs2,000 if this is repeated within 24 months.
They must also pay a late payment penalty of two per cent of the unpaid tax, which increases to four per cent after seven days.
After one calendar month, a one per cent daily penalty will be charged, with the fine capped at 300 per cent.
Khalid Al Bustani, director-general of the FTA, said: “Since the beginning of November, businesses registered for excise tax have been consistently complying with their requirements and deadlines, filing their tax returns on time.
“We urge those who haven’t done so yet to file their returns before the deadline of November 15, 2017, and settle the payable tax stated in the submitted excise tax return, in order to fulfil their obligations according to the tax procedures in the UAE.”
Incorrect tax returns can also incur a fixed penalty of Dhs3,000, as well as a percentage-based penalty of up to 50 per cent of the amount unpaid.
Around 250 businesses in the UAE are subject to excise tax.