UAE Excise Tax
A comprehensive guide to UAE Excise Tax - rates, covered goods, registration requirements, and compliance for importers and producers.
What is Excise Tax?
Excise Tax is a consumption tax levied on specific goods that are considered harmful to human health or the environment. The UAE implemented Excise Tax on October 1, 2017, as part of its commitment to promoting public health and reducing consumption of harmful products. The tax is applied at the point of production or importation.
Excise Tax Rates
Cigarettes, cigars, pipe tobacco, and all tobacco products including shisha
Beverages containing stimulants like caffeine, taurine, ginseng, or guarana
Soft drinks, sodas, and other aerated beverages (excluding unflavored sparkling water)
Beverages with added sugar or artificial sweeteners (added December 2019)
Electronic smoking devices and liquids (added December 2019)
Who Must Register for Excise Tax?
- Producers: Businesses that manufacture excise goods in the UAE
- Importers: Businesses that import excise goods into the UAE
- Stockpilers: Businesses holding excise goods for commercial purposes
- Warehouse Keepers: Operators of designated zones storing excise goods
Excise Tax Calculation
Excise Tax is calculated based on the "Excise Price" of the product:
The Excise Price is determined as the higher of:
- • The Standard Price set by the FTA
- • The Transaction Value (import price or production cost plus profit margin)
Exemptions and Relief
Re-Exports
Excise goods exported from the UAE may claim a refund
Designated Zones
Goods stored in designated zones pending release
Diplomats
Limited exemption for diplomatic missions
Personal Use
Limited quantities for personal consumption
Filing Requirements
- 1 Monthly Returns: Excise Tax returns are filed monthly through EmaraTax
- 2 Filing Deadline: By the 15th of the following month
- 3 Payment: Tax due must be paid by the filing deadline
- 4 Digital Tax Stamps: Required on tobacco products since January 2019
Related Terms
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