Question 1

Which goods are subject to Excise Tax?

Accepted Answer

Tobacco and tobacco products, energy drinks, electronic smoking devices and the liquids used in them are taxed at 100%. Carbonated drinks are taxed at 50%. Sweetened drinks are taxed under a sugar-content based tiered model that applies from 2026, so the tax depends on how much sugar a drink contains.

Question 2

Who must register?

Accepted Answer

Anyone who imports excise goods into the UAE, produces them for release for consumption, or stockpiles them in commercial quantities, as well as warehouse keepers of designated zones holding excise goods. There is no minimum turnover threshold.

Question 3

What are designated zones?

Accepted Answer

They are specific Free Zones treated as outside the UAE for excise purposes, subject to strict controls. Excise goods can move into and between them under suspension, but tax becomes due when they are released into the local market.

Question 4

What happens after registration?

Accepted Answer

You file excise returns and pay the tax due for each tax period by the FTA deadline, keep detailed stock and movement records, and declare excise goods correctly at customs.

Question 5

Is there a registration threshold?

Accepted Answer

No. Any business that imports, produces, stockpiles excise goods or releases them from a Designated Zone must register, regardless of value.

Question 6

How often are Excise returns filed?

Accepted Answer

Excise Tax returns are generally filed monthly, with the return and payment due shortly after the end of each period. We manage the calendar for you.

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