Call us consultation

Call us consultation

FTA Approved Tax Agent

Excise Tax

About Excise Tax

Excise Tax is an indirect tax levied on imports & productions of specific goods in U.A.E. These goods are typically not good to human health or the environment. In UAE, H.H. Khalifa bin Zayed Al Nahyan, the President of the United Arab Emirates issued, Federal Decree-Law No. (7) of 2017 on Excise Tax and which came into effect on 1 October 2017. And brought some new products in the ambit of Excise Tax vide cabinet resolution no. 52 of 2019 with effect from 1st December 2019.

Excise tax is an indirect tax levied on specific excise activities which are either:

  • Importers of excise goods
  • Producers of excise goods
  • Persons releasing goods from an excise tax designated zone
  • Stockpilers of excise goods, in certain cases

The goods which are subject to excise tax in the UAE, are as follows:

  • Tobacco and tobacco products.
  • Liquids used in electronic smoking devices and tools.
  • Electronic smoking devices and tools.
  • Carbonated drinks.
  • Energy drinks.
  • Sweetened drinks.

There is no registration threshold for excise tax, therefore any person who has been involved or has the intention to be involved in any of the activities listed above must register an account for excise tax.

Any person involved or forming the intention to be involved in any of the activities listed above must notify the FTA within 30 days of the end of the month in which they were involved or formed the intention to be involved, that they have a liability to be registered for excise tax.