Excise Tax in UAE : A Comprehensive Guide for Businesses

Excise Tax Designated Zones Services in Dubai are crucial for businesses dealing with goods subject to Excise Tax—an indirect tax imposed by the UAE government on specific products, primarily those deemed harmful to human health or the environment. This tax applies to items such as tobacco, energy drinks, carbonated drinks, and electronic smoking devices.

Excise Tax Designated Zones Services In Dubai

Excise Tax Designated Zones Services

Businesses involved in the import, production, or release of excise goods from a designated zone are liable to pay Excise Tax.

  • Tobacco and Tobacco Products
  • Liquids used in electronic smoking devices and tools
  • Electronic smoking devices and tools
  • Carbonated Drinks (note that this excludes sparkling water)
  • Energy Drinks
  • Sweetened Drinks

The tax rate varies depending on the product category. Currently, it ranges from 50% to 100%.

  • 50% on Carbonated Drinks
  • 100 % on Tobacco Products
  • 100 % on Energy Drinks
  • 100 % on Electronic Smoking Devices
  • 100 % on liquids used in such devices and tools
  • 50 % on any product with added sugar or other sweeteners

The Excise Tax return is due on the 15th day of the following month.

Non-compliance with Excise Tax regulations can lead to penalties and interest charges.

Seeking Professional Advice

For more information or to schedule a consultation regarding Excise Tax Designated Zones Services in Dubai, please reach out to us.