Excise Duty

Excise Duty

Excise duty in the UAE is a tax imposed on specific goods deemed harmful to health or the environment, such as tobacco products, energy drinks, and carbonated beverages.

  • On 1st October 2017: The United Arab Emirates introduced an excise tax on tobacco and tobacco products, carbonated drinks, and energy drinks.
  • On 1st December 2019: The United Arab Emirates expanded the scope of excise tax to include sweetened drinks, electronic smoking devices and tools, as well as liquids used in electronic smoking devices and tools.

The Duty Rates are As Follows:

  • 100% on tobacco and tobacco products, electronic smoking devices and tools, liquids used in electronic smoking devices and tools, and energy drinks
  • 50% on carbonated drinks and sweetened drinks.

These are applied in addition to the standard 5% VAT. Businesses handling these goods must register with the Federal Tax Authority, maintain accurate records, and adhere to compliance requirements.

Our Services

Our firm provides a range of tailored services to manage excise duty, including:

Tax Registration and Deregistration

Compliance Advice

Expert advice on compliance with UAE excise regulations.

Preparation and Submission of Tax Returns

Accurate Duty Calculation

Accurate calculation of excise duties to assist with budgeting and financial planning.

Tax Compliance and Reporting

Registration Help

Help with the registration process with the Federal Tax Authority.

Tax Registration and Deregistration

Documentation & Reporting

Preparation and management of necessary documentation and reporting requirements.

Preparation and Submission of Tax Returns

Regular Audits

Regular audits to ensure adherence to excise duty regulations and identify any issues.

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