Excise Tax in the UAE

UAE introduced excise tax in 2017 on specific goods harmful to human health or the environment. The Federal Tax Authority (FTA) administers excise tax. All businesses that import, produce, or stockpile excisable goods in the UAE must register.

Excise Tax Rates 2025

Tobacco products: 100%
Electronic smoking devices: 100%
Energy drinks: 100%
Carbonated drinks: 50%
Sweetened drinks: 50%

Who Must Register for Excise Tax?

Registration is mandatory for businesses that:

Import excisable goods into the UAE
Produce excisable goods in the UAE
Release excisable goods from a designated zone
Stockpile excisable goods (exceeding 2 months of supply)

Excise Tax Registration Process

Eligibility check: Determine if your products fall under excisable goods.
Document preparation: Trade license, product details, business activity proof.
EmaraTax registration: Complete the excise tax registration application.
Registration approval: FTA reviews and issues registration confirmation.
Compliance setup: Set up systems for accurate excise tax calculation and filing.

Excise Tax Return Filing

Registered businesses must file excise tax returns monthly. Returns are due by the 15th of the following month. Late filing results in penalties starting at AED 1,000.

Our team handles your monthly excise tax filings. We ensure accurate calculation, proper documentation, and on-time submissions.

Designated Zones & Excise Tax

Designated zones in the UAE are treated as outside the UAE for excise tax purposes. Goods moved between designated zones do not trigger excise tax liability. However, goods entering the UAE from a designated zone are subject to excise tax.

We help businesses in designated zones understand their obligations and manage excise tax compliance efficiently.

What goods are subject to excise tax in UAE?

Tobacco products and electronic smoking devices (100%), energy drinks (100%), carbonated drinks (50%), and sweetened drinks (50%). Any business dealing in these goods must register with the FTA.

When must I register for excise tax?

You must register before importing, producing, or releasing excisable goods. There is no registration threshold — any quantity requires registration.

How often must excise tax returns be filed?

Monthly, due by the 15th of the following month. Late submission carries a penalty of AED 1,000 for the first instance.

What are the penalties for non-compliance?

Penalties include AED 10,000–20,000 for late registration, AED 1,000–2,000 for late filing, and up to 300% of the unpaid tax for tax evasion.

Can excise tax-registered businesses claim deductions?

Yes. Businesses can deduct excise tax paid on goods exported from the UAE, returned to a designated zone, or used in manufacturing other excisable goods.

Why Choose Apex FinConsultants for Excise Tax?

Expert excise tax registration with the FTA
Monthly return filing to avoid penalties
Designated zone compliance guidance
Excise tax health checks and reviews
Penalty waiver assistance if needed

Need Excise Tax Assistance?

Stay compliant and avoid penalties. Let our experts handle your excise tax obligations.

Book a Consultation

Related Services

VAT Registration - Mandatory and voluntary VAT registration in the UAE
Corporate Tax Registration - Corporate tax registration with the FTA
ESR & AML Compliance - Economic substance and anti-money laundering compliance

Excise Tax Services UAE