- Introduction
- What Is Excise Tax?
- Items Subject to Excise Tax in the UAE
- Who Needs to Register in Excise Tax UAE?
- Why Register for Excise Tax in the UAE?
- How to Register in UAE Excise Tax?
- Excise Tax Filing and Payment
- What Happens If You Don’t Register?
- Why Choose SK Financial Services for Excise Tax Compliance?
- FAQs – Excise Tax in the UAE
- Final Thoughts
Introduction
The United Arab Emirates (UAE) government has implemented Excise Tax in the UAE as part of its broader tax strategy to reduce the consumption of harmful products and enhance public health. Excise Tax introduced in October 2017 to specific items that are deemed harmful to human health or the environment.
If you’re a manufacturer, importer, stockpiler, or involved in the supply chain of excise goods in the UAE, this guide will help you understand who needs to register for excise tax and why compliance is crucial.
What Is Excise Tax?
Excise tax is an indirect tax levied on select goods that are considered harmful to health or the environment. It is typically included in the retail price of the product and is paid by the end consumer, although businesses in the supply chain are responsible for collecting it and transfer it to the Federal Tax Authority (FTA).
Items Subject to Excise Tax in the UAE
| Product Category | Tax Rate |
|---|---|
|
Tobacco products |
100% |
|
Carbonated drinks |
50% |
|
Energy drinks |
100% |
|
Electronic smoking devices (e-cigarettes) |
100% |
|
Liquids used in e-cigarettes and vapes |
100% |
|
Sweetened drinks |
50% |
These rates may be revised. Always consult the FTA website for the most recent updates.
Who Needs to Register in Excise Tax UAE
If your business is involved in any of the following activities related to excise goods, you must register for excise tax:
✅ 1. Manufacturers of Excise Goods
- Businesses producing excise goods within the UAE.
- Includes production for local consumption and export.
✅ 2. Importers of Excise Goods
- Companies or individuals importing excise items into the UAE.
- Even one-time importers are required to register.
✅ 3. Stockpilers of Excise Goods
- Businesses holding excise goods intended for sale (especially if acquired tax-free).
- Must register if stockpiling exceeds threshold values.
✅ 4. Warehouse Keepers
- Operators who manage warehouses or designated zones where excise goods are stored under tax suspension arrangements.
Why Register for Excise Tax in the UAE?
✔️ Legal Compliance
It is mandatory under UAE tax law to register with the FTA if you’re dealing with excise goods. Failure to register can result in severe penalties and fines.
✔️ Avoid Hefty Fines
Unregistered entities caught importing or selling excise goods are subject to administrative penalties, backdated tax payments, and possible legal action.
✔️ Boost Public Trust
Being FTA-registered boosts your brand’s credibility and trustworthiness, especially in regulated sectors like tobacco, beverages, and e-cigarettes.
✔️ Access to Tax Suspension Schemes
Registered businesses may store goods in designated zones without immediate tax payment, improving cash flow and supply chain flexibility.
How to Register in UAE Excise Tax?
You can register for Excise Tax through the Federal Tax Authority’s e-Services portal.
Steps to Register:
- Create an FTA e-Services account: https://eservices.tax.gov.ae
- Fill out the Excise Tax Registration Form with:
- Business license
- Emirates ID and passport of the authorized signatory
- Customs registration (if applicable)
- Product details
- Submit and wait for FTA approval.
- Once approved, you’ll receive your Excise Tax Registration Number (TRN).
Businesses must keep records of excise goods production, import, and inventory for at least 5 years.
Excise Tax Filing and Payment
- Returns must be submitted monthly through the FTA portal.
- Payment must be made by the 15th of the following month.
- Late filing results in penalties, including:
- AED 1,000 for the first offense
- AED 2,000 for repeated offenses
What Happens If You Don’t Register?
Failing to register for excise tax when required can result in:
- Hefty fines
- Backdated tax liabilities
- Legal actions and criminal proceedings
- Reputational damage and business disruption
Why Choose SK Financial Services for Excise Tax Compliance?
At SK Financial Services, we offer full support for excise tax compliance in the UAE. Our team of tax professionals ensures that your business remains compliant, accurate, and audit-ready.
Our Excise Tax Services Include:
- Excise tax registration on FTA portal
- Filing of monthly excise tax returns
- Product classification and tax calculation
- Recordkeeping and audit support
- Staff training and compliance advisory
Contact Us Today:
📞 Mobile/WhatsApp: +971 54 330 4320
📧Email: Syed.Faisal@SKFinancial.co
🌐 Website: https://www.skfinancial.co
FAQs – Excise Tax in the UAE
1. What is the difference between VAT and Excise Tax?
2. Can I sell excise goods without registration?
3. Is Excise Tax charged on exports?
4. Do Free Zone businesses need to register for excise tax?
5. Can SK Financial help with excise tax registration?
Final Thoughts
Understanding excise tax in the UAE is essential for businesses involved with regulated goods. Registration is not just a legal requirement—it’s a smart business move that prevents penalties and builds credibility. Whether you’re a manufacturer, importer, or wholesaler, timely and correct compliance is the key.
Partner with SK Financial Services for expert guidance, peace of mind, and total tax compliance in 2025 and beyond.
Feel Free to Contact Us
Mobile: +971 54 3304320
Email: Syed.Faisal@skfinancial.co
WhatsApp: +971 54 3304320
Timing: 09:00am to 05:00pm
Days: Monday to Saturday
