Excise Tax
Excise Tax
Excise Tax was introduced across the UAE in 2017. Excise tax is a form of indirect tax levied on specific goods which are typically harmful to human health or the environment.
UAE excise tax rates:
50 per cent for carbonated drinks
100 per cent f or tobacco products
100 per cent for energy drinks
100 per cent on liquids used in electronic smoking devices and tools
100 per cent on electronic smoking devices
50 per cent on any product with added sugar or other sweeteners.
Activities must register for Excise Tax
The Federal Decree-Law No. 7 of 2017 on Excise Tax stipulates that businesses/ persons that are engaged in any of the below activities must register for tax;
- Importing of excise goods.
- Production of excise goods.
- Releasing goods from an excise tax designated zone.
- Stockpilers of excise goods, in certain cases.
- Warehouse keepers, in certain cases.