Excise Tax in UAE

Excise tax was introduced across the UAE on 1 October 2017.

It is an indirect tax that is levied on goods that are deemed to be harmful to human health or the environment.

Goods to which this tax applies are:

  • 50% on carbonated drinks (except for unflavored carbonated water). It may also apply to items that can be the basis of a carbonated beverage. Also considered to be carbonated drinks are any concentrations, powder, gel, or extracts intended to be made into an aerated beverage.
  • 100% on energy drinks that contain stimulating substances which include caffeine, taurine, ginseng, and guarana. It may also apply to items that can be the basis of an energy drink.
  • 100% on tobacco and tobacco products to include all items listed within Schedule 24 of the GCC Common Customs Tariff.

From 1 December 2019, excise tax will be levied also on:

  • 100 % on electronic smoking devices and tools.
  • 100% on liquids used in such devices and tools.
  • 50% on sweetened drinks.

Purpose for levying excise tax.

Excise tax intends to reduce the consumption of unhealthy and harmful commodities while also raising the revenue for the government to spend on beneficial public services.

Businesses that are engaged in any of the below activities must register for excise tax.

  • The import of excise goods into the UAE
  • The production of excise goods, wherein the goods are released for consumption in the UAE
  • The stockpiling of excise goods in the UAE in certain cases

How to register for excise Tax?

Businesses can register for excise tax on the e-services sections on the FTA Website.

You need to create an account and sign in. For details on excise tax registration, read the excise tax user registration guide.

For general inquiries about tax registration kindly contact Federal Tax Authority by sending an email to info@tax.gov.ae or dial 600 599 994 or 04-7775777.

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Click here to view the E-learning module on Excise Tax.