Tax Advisory Services in Dubai ,United Arab Emirates

Excise Tax Advisory

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What is Excise Tax in UAE ?

Simply ,Excise Tax is a form of indirect tax levied on specific goods. These goods are typically those that are harmful to human health or the environment.

EXCISE TAX IN UAE

In UAE, Excise Tax is currently applied on the following goods:

  • 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.

Rates

  • 50 per cent on carbonated drinks
  • 100 per cent on tobacco products
  • 100 per cent on energy drinks
  • 100 per cent on electronic smoking devices
  • 100 per cent on liquids used in such devices and tools
  • 50 per cent on any product with added sugar or other sweeteners.
Requirments

A business in the UAE must register for this tax if it meets at least one of the following conditions:

  1. Firstly, if a business imports goods into the UAE, it must register, as imported goods fall under taxable activities.

  2. Secondly, if a business produces excise goods, registration is mandatory because production triggers a tax obligation.

  3. Additionally, if a business stockpiles excise goods within the UAE, it must comply with registration requirements, since holding such goods creates a tax liability.

  4. Finally, if excise goods are released from a designated zone, the business is obligated to register in order to ensure proper tax reporting.

Therefore, any business engaged in these activities should carefully assess its operations to remain fully compliant with UAE tax regulations.

How to Register

Visit the e-services in the FTA website and can register your business  or Consultants Like RVG can help you with all the services related to Excise Tax

FAQs

Products subject to Excise Tax include tobacco and tobacco products, liquids for electronic smoking devices, electronic smoking devices, carbonated drinks, and energy drinks. RVG can guide businesses on all applicable categories.

Any business that imports, produces, stockpiles, or releases excise goods from a designated zone in the UAE must register with the Federal Tax Authority. RVG Chartered Accountants in Dubai assists companies with complete registration and compliance.

Once registered, businesses must file returns by the 15th day after the end of each tax period. RVG helps clients ensure timely and accurate filings to avoid penalties.

Yes. Late filing or payment can result in fines by the Federal Tax Authority. RVG provides advisory to ensure businesses meet all deadlines and remain fully compliant.

Excise Tax is calculated based on the retail price at rates defined by UAE law, usually ranging from 50% to 100% depending on the product. RVG helps businesses accurately calculate tax liabilities.

Yes. Maintaining detailed records of stock, invoices, and payments is mandatory. RVG Chartered Accountants supports businesses in proper record-keeping for audits and compliance purposes.

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