Know More About Excise Tax In UAE

know more about excise tax in uae
  • Excise tax is an indirect tax where business entity collects excise tax from customers and pays to the Government.
  • Excise tax is levied on specific goods which are harmful to human health or the environment.
  • Excise tax is levied with an intent to reduce consumption of specific goods and simultaneously to raise government revenue to use for public services.
  • Excise tax is levied on Tobacco products, electronic smoking devices and tools, liquids used in electronic smoking devices and tools, carbonated drinks, sweetened drinks, and energy drinks.
  • Excise tax rate ranges from 50% to 100% on price of excise products.
  • Business entities with the following activities are obligated to register and comply with excise tax law:
    • Import, production, release of excise products
    • Warehouse keepers and stockpiles of excise products in certain cases
  • Business entities who deal with excise products must comply with:
    • Register with Federal Tax Authority (FTA)
    • collect excise tax from customers
    • Pay collected tax to the government
    • File excise tax returns with FTA
    • Comply with excise tax regulations
  • Non-compliance with excise law attracts fines and administrative penalties