Excise tax in the United Arab Emirates (UAE) is a specific form of indirect tax introduced to regulate the consumption of certain goods deemed harmful to health or the environment. The tax was implemented on October 1, 2017, as part of the UAE’s broader efforts to diversify its revenue sources and encourage healthier lifestyles.
Which goods are subject to Excise Tax, and the applicable rates are as follows:
There is no minimum threshold for registration. If you start or plan to engage in any of these activities mentioned below, you must register with the Federal Tax Authority (FTA) within 30 days of the end of the month in which the activity began or the intention was formed. Upon registration, the Federal Tax Authority will issue you an Excise Tax Registration Number (TRN).
Excise tax registration is mandatory for a business in the UAE under the following conditions:
Registration is required regardless of the volume of goods or the scale of operations. The business must notify the Federal Tax Authority (FTA) within 30 days from the end of the month in which the activity commenced or the intention to engage in such activities was established.
Failure to comply with Excise Tax laws may result in:
Hisab ensures that your business stays 100% compliant, avoiding penalties and protecting your reputation.
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