Excise Tax Registration and Advisory
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The Registration for Excise Tax in the UAE has started on 17th September 2017.
Excise tax is levied on specific goods referred to as “excise goods,” which are typically harmful to human health or the environment. Following definitions apply to determine whether a product is an excise good:
- Carbonated drinks comprise any aerated beverage except for unflavoured aerated water. Carbonated drinks also include any concentrations, powder, gel, or extracts intended to be made into an aerated beverage.
- Energy drinks comprise any beverages which are sold or marketed as an energy drink and containing stimulant components that provide physical and mental stimulation, which includes without limitation: caffeine, taurine, ginseng, guarana and any substance that has a similar or identical effect as the aforementioned substances. Also, any concentrations, powder, gel, or extracts intended to be made into an energy-boosting drink are considered to be energy drinks.
- Tobacco and tobacco products comprise all items listed within Schedule 24 of the GCC Common Customs Tariff.
From 1 December 2019, excise tax also encompassed the following items:
- electric smoking devices and tools
- liquids used in smoking devices and tools
- sweetened drinks
Rate of excise tax
As per UAE Federal Decree Law No. 7 of 2017 on Excise Taxregistration for excise tax is mandatory for any business engaged in:
- 50% on any product with added sugar or other sweeteners.
- 50% on carbonated drinks
- 100% on electronic smoking devices
- 100% on liquids used in smoking devices and tools
- 100% on tobacco products
- 100% on energy drinks
Businesses responsible for registration for excise tax
The rate of the excise tax is as follows:
- import of excise goods into the UAE
- production of excise goods that are supplied for consumption in the UAE
- the stocking of excise goods in the UAE in certain cases
- warehouse keeper, who is mandated for overseeing an excise warehouse or designated zone.
FTA can conduct an audit of excisable corporates and impose penalties on those not complying with the law.
How can we support you?
We take pride in being counted as pioneer tax agents in Abu Dhabi for a wide array of satisfied clients across the UAE.
Our tax experts providing VAT Consultancy, VAT Advisory and VAT Implementation Services in the UAE are well versed with Excise Law and Regulations to support and guide the business community to register for Excise Tax as well as we provide advisory service to ensure compliance with the Excise Law.