Excise Tax in the UAE -

Excise Tax in the UAE – An Overview

Excise Tax is a form of indirect tax applied to specific goods that are considered harmful to human health or the environment. This consumption-based tax is ultimately borne by the end consumer.

Introduced in the UAE on October 1, 2017, Excise Tax aims to reduce the consumption of such harmful products, while also contributing to public health initiatives and government revenue.

Excise Goods & Applicable Tax Rates

Initial Excise Goods (Since 2017):

Excise Goods

Carbonated Drinks

Energy Drinks

Tobacco and Tobacco Products

Tax Rate

50%

100%

Extended Scope

(Cabinet Decision No. 52 of 2019):

Excise Goods

Electronic Smoking Devices

Sweetened Drinks

Tax Rate

100%

50%

Excise Goods & Applicable Tax Rates

As per Federal Decree Law No. 7 of 2017, the following entities are obligated to register for Excise Tax:

Importers of excise goods into the UAE
Manufacturers of excise goods within the UAE
Warehouse keepers storing excise goods
Stockpilers of excise goods

Note: There is no minimum revenue threshold for Excise Tax registration.

Required Documents for Excise Tax Registration

Company legal documents
Emirates ID and passport copies of authorized signatories, shareholders, or partners
Detailed business information
Product list of excise goods
Company bank account details
Customs registration certificate (if applicable)
Any prior civil, criminal, or immigration case details

How is Excise Tax Calculated?

Excise Tax is calculated as a percentage (50% or 100%) of the higher value between:
- The retail selling price listed by FTA
- The designated price declared by the taxpayer

FTA Product Listing Requirement

If your excise goods are not already listed with the FTA (e.g., new or prototype items), you must submit them for product listing through the EmaraTax system.

Refund of Excise Tax

Refunds may be available in specific situations, such as:

Double taxation: If excise tax is paid on raw materials (e.g., raw tobacco) and again on finished goods.
Exported goods: Products taxed but exported outside the UAE are eligible for refund since they aren’t consumed locally.

All refund applications are submitted via the FTA EmaraTax Portal with supporting documentation.

Our Excise Tax Services at Alamtar

✅ Excise Tax Registration

✅ Monthly Excise Tax Return Filing

✅ Excise Tax Compliance & Advisory

✅ Refund Application Support

✅ Product Listing Assistance with FTA

Why Choose Alamtar Tax Consultants?

Each business is unique — we analyze your operational structure to offer personalized tax strategies.

Our team has deep industry knowledge and years of hands-on experience with UAE tax law.

We offer quick turnaround and up-to-date compliance based on current legal regulations.

CONTACT US

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