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
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.
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.