Tobacco Products: Includes items in Schedule 24 of the GCC Customs Tariff, such as heated cigarettes.
Electronic Smoking Devices and Liquids: Covers all e-cigarettes, devices, and liquids, with or without nicotine.
Carbonated Beverages: Any fizzy drink.
Energy Drinks: Beverages with stimulant substances marketed as energy boosters.
Sweetened Beverages: Drinks with added sugar or sweeteners, including concentrates.
Registration Requirements: Businesses involved in importing, producing, or storing excisable goods must register for an Excise TRN at least 30 days before starting operations. Infrequent importers may also need registration.
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Excise Tax is an indirect tax imposed on specific goods harmful to health or the environment, such as tobacco, energy drinks, and carbonated beverages, to reduce consumption and generate revenue.
Businesses that import, produce, or store excise goods for commercial purposes must register with the Federal Tax Authority (FTA) before conducting any excise-related activities in the UAE.
The UAE applies 50% Excise Tax on carbonated drinks, 100% on tobacco products and energy drinks, and 50% on electronic smoking devices and liquids used in such devices.
Excise Tax targets specific goods considered harmful, while VAT applies broadly to most goods and services. Excise Tax is charged once, while VAT applies at each supply stage.
Excise Tax returns must be filed online via the Federal Tax Authority (FTA) portal, typically on a monthly basis, ensuring accurate reporting of excise goods and payable tax.
Non-compliance, such as failing to register, file returns, or maintain proper records, can result in substantial fines, business suspension, and potential legal action from the Federal Tax Authority.
Excise Tax applies to tobacco products, electronic smoking devices, carbonated and energy drinks, and sweetened beverages — all considered harmful to human health or the environment by UAE authorities.
