Excise Tax

We assist businesses with UAE VAT, ensuring accurate input-output tax verification and full compliance with FTA regulations and accounting standards.

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What is an Excise Tax in the UAE?

Excise Tax in the UAE is an indirect tax imposed on specific goods that are deemed harmful to human health or the environment, such as tobacco products, energy drinks, and carbonated beverages. It ensures that businesses comply with Federal Tax Authority (FTA) regulations while maintaining accurate records of production, import, and sales of excise goods. Companies are assessed to confirm that excise tax is correctly calculated, collected, and remitted, meeting all statutory obligations. The excise tax framework is designed to promote responsible consumption, accountability, and regulatory compliance, helping businesses manage risks and make informed decisions that support financial stability and sustainable growth.

Which Goods are Subject to Excise Tax in the UAE?

Goods subject to excise tax in the UAE are specific products deemed harmful to human health or the environment, as outlined under Federal Decree-Law No. 7 of 2017. This includes tobacco products, energy drinks, carbonated beverages, and other excisable goods introduced by the FTA. Businesses importing, producing, or distributing these goods are required to enroll for excise tax and account for the applicable rates. The classification ensures that excise tax is applied consistently, encourages responsible consumption, and supports regulatory oversight, public health objectives, and efficient tax administration across all sectors.

What is the Current Excise Tax Rate for Different Products?

Product Category	Excise Tax Rate	Description
Tobacco Products	100%	Includes cigarettes, cigars, chewing tobacco, and other tobacco-related items.
Energy Drinks	100%	All carbonated and non-carbonated energy drinks with stimulating ingredients.
Carbonated Drinks	50%	Sweetened carbonated beverages such as sodas and fizzy drinks.

Which Businesses are Required to Enroll for UAE Excise Tax?

Businesses required to enroll for excise tax in the UAE include:

Businesses that produce excisable goods within the UAE.

Businesses that import excisable goods into the UAE.

Businesses that store excisable goods for commercial purposes.

Businesses that distribute or trade excisable goods, including wholesalers and retailers.

Free zone entities involved in production, import, or storage of excisable goods.

Businesses handling tobacco products, including cigarettes, cigars, and chewing tobacco.

Businesses dealing with energy drinks and other caffeinated beverages.

Businesses selling carbonated drinks subject to excise tax.

Entities handling any other products designated by the FTA as excisable.

Businesses that repackage or modify excisable goods before sale.

Services Offered

UAE Excise Tax Services We Offer

We assist businesses with UAE excise tax, ensuring accurate calculation and reporting of excisable goods and full compliance with FTA regulations and relevant accounting standards.

UAE Excise Tax Enrollment

Excise Compliance Services

Excise Advisory Services

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Why Choose RBTax?

UAE Excise Tax with RadiantBiz Tax

At RadiantBiz Tax, we provide expert guidance through every step of the excise tax process for businesses across all UAE jurisdictions. Our flexible approach allows us to work with clients through in-person consultations, virtual meetings, emails, and messaging, ensuring thorough verification of financial records and full compliance with FTA excise tax regulations.

Initial Consultation and Excise Tax Review

Assessing your business structure, excisable goods, production and import records, and reporting obligations under the UAE excise tax law and relevant accounting standards.

Compliance Check

Examining financial statements and excise tax records, identifying discrepancies, and ensuring full adherence to FTA regulations and statutory obligations.

Build Excise Tax Strategy

Designing a tailored excise tax plan, including liability estimation, risk assessment, filing timelines, and evaluation of internal controls related to excisable goods.

Execute and Report

Managing the implementation of your excise tax plan with precision, preparing excise tax returns, highlighting key findings, and providing ongoing support to ensure your business remains fully compliant with UAE excise tax laws and regulatory requirements.

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Meet Our Team of Certified Tax Consultants

Our success stems from a team of certified professionals holding qualifications such as CPA, CMA, ACCA, CIA, CTA, and UAE FTA Tax Agent licenses, bringing extensive UAE experience and recognized expertise to every client engagement. Meet the Tax Guides