Services

Excise Tax

From registration and filing to calculating excise tax liabilities, we handle all aspects of excise tax compliance. Our experts ensure your business stays fully compliant with the latest excise tax laws and regulations in the UAE.
Get a Free Consultation
Services

Excise Tax

From registration and filing to calculating excise tax liabilities, we handle all aspects of excise tax compliance. Our experts ensure your business stays fully compliant with the latest excise tax laws and regulations in the UAE.
Get a Free Consultation

Excise Tax Services in UAE

Excise Tax in the UAE is a form of indirect tax imposed on specific goods imported into, produced within, or stockpiled in the country, under certain circumstances. The Federal Tax Authority (FTA) has introduced excise tax on products deemed harmful to human health or the environment. The primary goal of implementing excise tax in the UAE is to curb the consumption of products considered detrimental to health and the environment. Simultaneously, it aims to boost government revenue, which can then be invested in public services.

Who should register for Excise Tax in the UAE?

Understanding the criteria for registering for Excise Tax in the United Arab Emirates (UAE) is essential for businesses and individuals engaged in specific activities. The Federal Decree-Law No. 7 of 2017 on Excise Tax outlines clear guidelines for mandatory registration. If your operations fall within the categories mentioned below, it is crucial to complete the registration process to comply with UAE Excise Tax regulations.

  • Importing excise goods.
  • Producing excise goods.
  • Releasing goods from an excise tax designated zone.
  • Stockpiling excise goods, in specific cases.
  • Operating as warehouse keepers, in specific cases.

UAE Excise Tax Rates

Carbonated drinks

50%

Tobacco products

100%

Energy drinks

100%

Liquids used in electronic smoking devices and tools

100%

Electronic smoking devices

100%

Sweetened drinks

50%

Saad Fathalla Saeed
SMG Tobacco L.L.C
TaxDoctor team has played an important role in our excise tax reporting process. Their professionalism and tax experience have streamlined our excise tax procedures..We greatly appreciate their valuable support!
Majid Hassan Alnaqbi
Majid Alnaqbi General Trading L.L.C
TaxDoctor has been an amazing partner in helping us handle our taxes in the UAE. They really know their stuff when it comes to UAE tax rules, and they've given us the right answers and solutions for all our tax issues. We're really grateful! Thanks a bunch!
Joseph Barron
Outlook Community Management LLC
Happy to recommend them as a great company to work with.
Alana Prinsloo
Casa Verde Real Estate LLC
I would suggest that if you want to outsource your accounting and tax related work, go with TaxDoctor, you will be able to save ample time
Philip Hand
West One Contracting L.L.C
Monthly accounting and tax plan saves me money compared to hiring a local accountant and also saves me time since I don't have to manage anyone! As a business owner, TaxDoctor provides me with more time and less stress by taking care of the accounting and tax work..
Brent Anderson
Gemini Logistics Solutions LLC
Would recommend Auditcare without hesitation!
Mohamed Ajwath
Reem Al Khaleej Rent A Car L.L.C
TaxDoctor has been a lifesaver. At first, I try to do the bookkeeping on my own with the help of other employees. It did not seem to work out for me, Now I am on monthly package with tax filing. Great value for money..
Anis Raja
Yamal Properties
I highly recommend TaxDoctor for accounting and tax services.
Mohamad Bachier Khoja
Usha Food Trading L.L.C
Accurate and timely financial reporting by the team has greatly simplified my decision-making process..I can see where my money is going. I get full transparency into my books!
Hala Saad
Royal Rich Interior Design Works LLC
As a business owner, TaxDoctor is giving me more time and less stress by handling accounting and tax work

TaxDoctor's Comprehensive Excise Tax Services

Experienced Team
Our team comprises highly qualified professionals with extensive experience in excise tax compliance. We stay updated with evolving excise tax laws and regulations to provide accurate guidance.
Comprehensive Services
TaxDoctor offers end-to-end excise tax services, including assessment, registration, compliance, and reporting, ensuring that your business meets all excise tax requirements.
Specialized Excise Tax Expertise
TaxDoctor specializes in excise tax services, focusing exclusively on helping businesses navigate the complex landscape of UAE excise tax regulations.
Customized Solutions
We provide tailored excise tax solutions to meet the specific needs of your business, adapting our approach to align with your industry and operations.
Efficient Compliance
TaxDoctor streamlines the excise tax compliance process, ensuring that your submissions are accurate, timely, and meet all regulatory requirements.
Expert Guidance
TaxDoctor offers expert guidance and recommendations based on our findings, helping you maintain full compliance with excise tax regulations and avoid penalties.

Goods subject to Excise Tax in UAE

Tobacco and Tobacco products

All items listed within Schedule 24 of the GCC Common Customs Tariff, including electrically-heated cigarettes, will be categorized as tobacco and tobacco products. These products include:

  • Chewing tobacco
  • Cigars
  • Cigarettes
  • Cigarette rag
  • Cigarillo
  • Expanded tobacco
  • Hand rolling tobacco
  • Herbal smoking products
  • Reconstituted tobacco sheets
  • Snuff

Carbonated drinks

This includes any aerated beverage and any concentrations, powder, gel, or extracts intended to be made into an aerated beverage. Unflavored aerated water is exempted.

Energy drinks

Any beverages which are marketed, or sold as an energy drink, and contains stimulant substances that provide mental and physical stimulation or includes caffeine, taurine, ginseng and guarana, will fall in this category. Substances that have similar effects as the ones mentioned above and any concentrations, powder, gel or extracts intended to be made into an energy enhancing drink will also be levied tax.

Electronic smoking devices and tools

Electronic smoking devices and tools shall include all electronic smoking devices and tools and the like, whether or not containing nicotine or tobacco. All liquid used in electronic smoking devices and tools used in such devices even if they contain nicotine or not will be levied tax.

Sweetened Drinks

Sweetened drinks that come under excise tax include any product to which a source of sugar or sweetener is added and is produced either as:

  • A ready to drink beverage or
  • Concentrates, powders, gel, extracts or any other similar product that can be made into a sweetened drink

Source of sugar includes white sugar, soft white sugar, powdered sugar, soft brown sugar and glucose syrup. Whereas sweeteners include saccharin and its salts, aspartame, sorbitol, and neotame.

Goods excluded from Excise Tax

  • Ready-to-drink beverages containing at least 75% milk or milk substitutes.
  • Baby formula or baby food.
  • Foods for special medical purposes.
  • Beverages consumed for special dietary needs or medical use.
  • Beverages containing alcohol.

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Excise Tax compliance in the UAE

Registration
Any business involved in the production, import, or release of excise goods in the UAE must register for Excise Tax. This includes manufacturers, importers, distributors, and retailers of excise goods. Registered businesses are issued a Tax Registration Number specifically for Excise Tax purposes. This unique identifier is used for all Excise Tax-related transactions and communications with tax authorities.
Record-Keeping
Maintaining comprehensive records is a fundamental aspect of compliance. Businesses must keep records that include information about excise goods, their quantities, movements, purchases, sales, and other relevant transactions. Accurate inventory records are essential, detailing the opening and closing balances of excise goods, any transfers, and the location of goods within the UAE. All invoices, receipts, and related documents must be retained, demonstrating the purchase, sale, or movement of excise goods.
Filing and Payment
Registered businesses are required to file periodic Excise Tax returns, usually on a monthly basis, reporting the details of excise goods transactions during the reporting period. Businesses calculate their Excise Tax liability based on the applicable tax rates and the value of excise goods released into the market. Payment of Excise Tax liabilities must be made to the tax authorities within the prescribed timeframe. Failure to file returns or make payments on time may result in penalties and interest charges.
Auditing
The UAE tax authorities have the right to conduct audits and inspections of businesses to verify their compliance with Excise Tax regulations. Businesses should be prepared for audits by ensuring that all required records and documents are readily available for inspection. Full cooperation with tax authorities during audits is essential. Providing accurate information and addressing queries promptly is crucial for a smooth audit process.
Stamps and Labels
Certain excise goods, such as tobacco products, must bear specific tax stamps or labels as evidence of compliance with Excise Tax requirements. These stamps or labels help in tracking and verification. Businesses must ensure that the correct tax stamps or labels are affixed to their excise goods and that they are used in accordance with the prescribed regulations.

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