The UAE
government introduced an excise duty on carbonated drinks, tobacco products and
energy drinks in 2017 and decided to impose the same on e-cigarettes, e-liquids
and various soft drinks from December 1, 2019.
The excise
duty applies to certain goods which are harmful to human health or the
environment. The UAE government is collecting excise duties to reduce the
consumption of harmful and unhealthy commodities, while also increasing
government revenues that can be used for public services.
UAE excise tax list
- 50 per cent for carbonated drinks
- 100 per cent f or tobacco products
- 100 per cent for energy drinks
- 100 per cent on liquids used in electronic
smoking devices and tools
- 100 per cent on electronic smoking devices
- 50 per cent on any product with added sugar or
other sweeteners.
What Business Needs to do
The Federal Decree-Law No. 7 of
2017 on Excise Tax
stipulates that businesses/ person that are engaged in any of the below
activities must register for tax.
- Importing of excise goods.
- Production of excise goods.
- Releasing goods from an excise tax designated zone.
- Stockpilers of excise goods, in certain cases.
- Warehouse keepers, in certain cases.
If
you have any questions or concerns about the newly proposed federal corporate
tax regime, SAB Auditing, one of the leading business consultants in the UAE, will provide
the necessary assistance.
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