Excise Tax Services UAE

Under UAE Cabinet Decision No. 52 of 2019, excise tax applies to: carbonated drinks (50%), energy drinks (100%), tobacco and tobacco products (100%), electronic smoking devices, tools, and liquids (100%), and sweetened drinks with added sugar (50%).

Any legal entity or individual that produces excise goods in the UAE, imports excise goods into the UAE, releases excise goods from an excise Designated Zone, or stockpiles excise goods for commercial purposes must register with the FTA before commencing operations.

No. Unlike VAT, there is no monetary turnover threshold for excise tax. Any business engaging in the import, manufacture, or release of excise goods must register immediately regardless of business size or sales volume.

Excise tax is calculated as a percentage of the higher of the declared Retail Selling Price (the price charged to end consumers including all duties but excluding VAT) or the standard minimum price published on the FTA excise goods list.

Excise tax returns (Form EX201) must be submitted and settled through the FTA EmaraTax portal no later than the 15th day of the month following the end of each monthly tax period.

An excise Designated Zone is a fenced, customs-controlled area approved by the FTA where excise goods can be stored or manufactured under tax suspension. Excise tax is not payable until the goods are released from the Designated Zone into the UAE domestic market.

The Digital Tax Stamp scheme requires physical security stamps with electronic tracking features on tobacco products and electronic smoking liquids. Items without approved stamps cannot be imported, traded, or distributed within the UAE.

Penalties are severe under the UAE Tax Procedures Law, including AED 20,000 for failure to register, AED 1,000 to AED 2,000 for late return filing, 2% to 4% per month late payment fines, and substantial penalties for possessing unmarked or unregistered excise goods.