Excise Tax in UAE
Excise Tax in UAE is a type of indirect tax levied on specific goods that are imported into, produced within, or stockpiled (in certain circumstances) in the UAE. Federal Tax Authority (FTA) has implemented an excise tax on those products that are harmful to human health or the environment.
The objective behind imposing excise tax in UAE is to reduce the consumption of products that are considered harmful to the health and the environment and therefore to discourage the consumption of these specific goods by the general public while also increasing the government revenues that can be spent on public services.
Excise Tax Goods
Excise tax in UAE has been applied on the following goods:
- Tobacco products
- Energy drinks
- Carbonated drinks (excluding sparkling water)
Excise tax has also been levied on electronic cigarettes (e-cigarettes), electronic liquids (e-liquids), and many other soft drinks.
Excise Tax Rates
Excise Tax is currently applicable across the UAE on goods referred to as ‘excise goods’ at the following rates:
- 50% excise tax on carbonated drinks.
- 50% excise tax on any product with added sugar or other sweeteners.
- 100% excise tax on tobacco products.
- 100% excise tax on energy drinks.
- 100% excise tax on electronic smoking devices.
- 100% excise tax on liquids used in such devices and tools.
Implementation of Excise Tax
At Navneet Accounting & Bookkeeping LLC, our experts will assist you in implementing excise tax in your business effectively and efficiently and fulfilling your excise tax obligations. We will offer the following services of excise tax-
- Registration for excise tax
- Identification of the excise goods
- Excise tax returns (monthly)
- Excise tax consultancy
- Excise tax compliance system
- Stockpiling, inventory counting, and duty calculation advice
- Excise tax refunds
- De-registration
Businesses in UAE are urged to stay up to date with further excise tax developments including clarifications and guidelines by the FTA on standards and procedures for implementing excise tax on the new products.