Excise Tax
EXCISE TAX Services in the UAE
Excise duty is an indirect tax levied by the UAE government on goods deemed harmful to human health or the environment. The main reason for introducing excise duties is to reduce the consumption of these goods, thereby increasing government revenue that can be used for public purposes.
Excise duty in the UAE was initially introduced on certain goods on 1 October 2017 by Federal Decree-Law No. (7) of 2017 on Excise Duty. Subsequently, as of 1 December 2019, certain other products were brought under the scope of the excise tax by Cabinet Decision No. 52 of 2019. All taxable entities are eligible to register for excise tax in the UAE through the FTA’s online portal.
Carbonated beverages – any carbonated beverage
Energy drink – any drink which may contain stimulants which provide mental and physical stimulation and which is marketed or sold as an energy drink.
Tobacco and tobacco products – all goods listed in Schedule 24 of the GCC Common Customs Tariff, including electrically heated cigarettes.
Electronic smoking devices and appliances – all electronic smoking devices and appliances, whether or not containing nicotine or tobacco.
‘Liquids used in electronic smoking devices and instruments’ means all liquids used in such devices, whether or not containing nicotine or tobacco.
Sweetened beverages – any beverage to which sugar or other sweetener has been added as defined in GCC Standards Organisation Standards 148 and 995.
For carbonated, energy and sweetened beverages, any powder, gel, concentrate, extract or any other form that can be converted into a beverage is also considered an excisable good.
UAE excise duty exemptions for the products listed
The category of carbonated beverages does not include aerated water without flavour.
The following products are excluded from the definition of sweetened beverages.
- Beverages containing at least 75 % milk or milk substitutes
- infant formulae or baby foods
- Drinks for special diets or medical purposes
- Beverages containing alcohol are excluded from the definition of excise goods.
- UAE excise duty rates
Who should register for excise duty in the UAE?
The following groups are required to register for excise duty in the UAE.
- Manufacturers of excisable goods.
- Importers of excisable goods.
- Accumulators of excise goods.
- Warehousekeepers responsible for excise goods.
- Information and documents required for registration for excise duty in the UAE
When registering for excise duty, the applicant must submit the following documents:
- Details of the company together with the legal documents
- Details and documents of the authorised signatory
- Bank account details
- Nature of business and related information
- Customs registration details, if applicable
- List of excise goods in which the company is engaged
Our role as the UAE’s excise tax consultancy
Al-Hayat Consulting is one of the leading tax advisers in the UAE. We have established our presence in the market as VAT advisors and we also have professionals with in-depth knowledge and practical experience in the field of excise taxation. We can help you register for excise duty, file your monthly returns, register your products with the Federal Tax Authority and advise you on compliance with UAE excise duty law.
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