Excise Tax is an indirect tax imposed by the UAE government on specific goods, primarily those deemed harmful to human health or the environment. This tax applies to products such as tobacco, energy drinks, carbonated drinks, and electronic smoking devices.
Excise Tax
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.
