VAT Registration in UAE – Taxbee
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Excise Tax
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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. These goods are referred to as “excise goods”. When considering whether a product is an excise good, the following definitions apply:
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The UAE, Excise Tax is currently applied on the following goods
- Obacco and tobacco products.
- Liquids used in electronic smoking devices and tools.
- Electronic smoking devices and tools.
- Carbonated drinks (note that this excludes sparkling water).
- Energy drinks.
- Sweetened drinks.
Excise TAX is currently applicable across the UAE on goods referred to as ‘excise goods’ at the following rates:
- 50 per cent on carbonated drinks
- 100 per cent on tobacco products
- 100 per cent on energy drinks
- 100 per cent on electronic smoking devices
- 100 per cent on liquids used in such devices and tools
- 50 per cent on any product with added sugar or other sweeteners.
Businesses required to register for excise TAX
Under the UAE Federal Decree Law No. 7 of 2017 on Excise Tax, registering for excise tax is the responsibility of any business 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
- Anyone who is responsible for overseeing an excise warehouse or designated zone i.e. a warehouse keeper.
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