VAT & Excise Service
Excise tax has been implemented in UAE on tobacco products, energy drinks and carbonated drinks in 2017. The Federal Tax Authority (FTA) has announced new rates for excise tax in the UAE and has even expanded the list of excise goods from 1st December 2019. This increase in excise rates in the UAE was initiated to support the government’s efforts to enhance public health and prevent chronic diseases directly linked to the consumption of sugar and tobacco.
Businesses which import, manufacture, distribute, or stockpile the following Excise goods should be registered for Excise Tax:-
Energy drinks or any other any concentrations, powder, gel, or extracts intended to be made into an energy beverage
Carbonated drinks or any other any concentrations, powder, gel, or extracts intended to be made into an aerated beverage
Electronic smoking devices aka e-cigarettes
E-liquids used in electronic smoking devices, whether or not they contain nicotine or tobacco
Which Products Are Exempt From The Excise Tax In The Uae?
1) Ready-to-drink beverages containing at least 75% milk or milk substitutes
2) Baby formula or baby food
3) Beverages consumed for special dietary needs, as determined under Standard 654 of the GCC Standardization Organization under the heading ‘General Requirements for Pre-packaged Foods for Special Dietary Use’ and any subsequent and relevant standards
4) Beverages consumed for medical uses, as determined under Standard 1366 of the GCC Standardization Organisation under the heading ‘General Requirements for Handling of Foods for Special Medical Purposes’, and any subsequent and relevant standards
How To Register For Excise Tax In The Uae?
Excise tax registration is mandatory for all businesses dealing with excise goods in the UAE. The process can easily be done through the e-services section on the FTA website. All you need to do is log in or sign up with your details on FTA excise tax portal and follow the simple instructions they have there.