Excise Tax Services in UAE



Excise Tax Services

In the UAE, Excise Tax is currently applied on the following goods:

  • Tobacco products

  • Carbonated drinks (note that this excludes sparkling water)

  • Energy drinks

    • Services

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    The intent of Excise Tax is to reduce consumption of these commodities while also raising revenues for the government that can be spent on public services.

    The intent of Excise Tax is to reduce consumption of these commodities while also raising revenues for the government that can be spent on public services.

    It is important to understand any potential obligations you or your business may have in respect of the UAE Excise Tax. Excise Tax is currently applicable across the UAE on goods referred to as ‘excise goods’ at the following rates:

  • 50% for carbonated drinks

  • 100% for tobacco products

  • 100% for energy drinks


    • Excise Tax Registration

    Any business which imports, produces or stockpiles excise goods, or releases them from a designated zone in the UAE, should register for Excise Tax.


    Excise Tax is the responsibility of any person engaged in:

    The import of excise goods into the UAE

    The production of excise goods where they are released for consumption in the UAE

    The stockpiling of excise goods in the UAE in certain cases

    The release of excise goods from a designated zone


    Filing Excise Tax Returns and Making Payments

    Once you have registered for Excise Tax, you are required to file your Excise Tax return by the 15th day following the end of each tax period.

    Excise Tax returns are automatically populated based on the information completed by you in the following declaration forms (as applicable) submitted during, or at the end of, the tax period:

  • Excise Tax import declaration forms

  • Excise Tax production declaration forms

  • Excise Tax release from designated zone not requiring customs clearance declaration forms

  • Deductible Excise Tax declaration forms

    • To understand when you are required to complete the above forms and how to complete them, please contact us. Our experts will help ou in gu refer to the Excise Tax returns guide you based upon the compliance of UAE Excise Law.


    Digital Tax Stamps Scheme for Tobacco Products

    The DTS is a newly introduced control scheme requiring tobacco manufacturers and stakeholders to comply with enhanced standards for the importation and trading of tobacco in the UAE. DTS delivers unique pack marking and encoding to allow product trace-ability from the point of manufacturing through to the final Emirate of distribution, and to support enforcement activity targeting the reduction in illicit tobacco trading. The DTS scheme will require manufacturers to apply specific high security control markers (stamps) and codes to all packs, with the principle aim of the DTS scheme being:


    Objectives

  • To enhance the FTA's ability to control and collect taxes on tobacco products sold in the UAE, following importation or local manufacture.

  • To give the relevant authorities the ability to analyse and audit the supply chain in order to better identify the trade in illicit tobacco products.

    • To meet the compliance standards laid down by the World Health Organisations’s Framework Convention on Tobacco Control (FCTC) through the enabling of tracking and traceability of compliant tobacco products.


    Warehouse Keepers and Designed Zones

    Any person who operates or intends to operate a ‘designated zone’, must register as a warehouse keeper.