Excise Tax Obligations
Written in plain language for general understanding. This is educational content, not legal advice. Based on UAE federal decrees, laws, and ministerial decisions.
UAE Federal Law
What is this right?
The UAE imposes excise tax on specific goods considered harmful to health or the environment:
- Tobacco products: Taxed at 100% of the retail price.
- E-cigarettes and vaping liquids: Taxed at 100%.
- Energy drinks: Taxed at 100%.
- Carbonated drinks: Taxed at 50% (excluding unflavoured sparkling water).
- Sweetened drinks: Taxed at 50% (any drink with added sugar, sweeteners, or flavouring).
- Who pays: Excise tax is paid by importers and manufacturers, but the cost is passed on to consumers through higher retail prices.
When does it apply?
- You import, manufacture, or stockpile excise goods in the UAE.
- You release excise goods from a designated zone (free zone warehouse) into the UAE market.
- As a consumer, excise tax is built into the price you pay at the store.
What should you do?
- If you import or produce excise goods, register with the FTA for excise tax.
- File excise tax returns monthly through the EmaraTax portal.
- Keep detailed records of all excise goods you import, produce, or release from designated zones.
- Mark all products with the digital tax stamp where required.
What should you NOT do?
- Do not sell excise goods without registration if you are an importer or manufacturer.
- Do not stockpile excise goods before a rate change to avoid paying the new rate — this is monitored by the FTA.
- Do not import excise goods for personal use above the allowed limits without declaring them at customs.
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