Excise Tax in UAE 

Excise Tax in UAE is a type of indirect tax levied on specific goods that are imported into, produced within, or stockpiled (in certain circumstances) in the UAE. Federal Tax Authority (FTA) has implemented an excise tax on those products that are harmful to human health or the environment. 

The objective behind imposing excise tax in UAE is to reduce the consumption of products that are considered harmful to the health and the environment and therefore to discourage the consumption of these specific goods by the general public while also increasing the government revenues that can be spent on public services.

Excise Tax Goods

Excise tax in UAE has been applied on the following goods:

• Tobacco products
• Energy drinks
• Carbonated drinks (excluding sparkling water)

Excise tax has also been levied on electronic cigarettes (e-cigarettes), electronic liquids (e-liquids), and many other soft drinks.

Excise Tax Rates

Excise Tax is currently applicable across the UAE on goods referred to as ‘excise goods’ at the following rates:

• 50% excise tax on carbonated drinks.
• 50% excise tax on any product with added sugar or other sweeteners.
• 100% excise tax on tobacco products.
• 100% excise tax on energy drinks.
• 100% excise tax on electronic smoking devices.
• 100% excise tax on liquids used in such devices and tools.

Implementation of Excise Tax with the help of Xact Auditing

Xact Auditing of one of the registered tax consultants in UAE. Our excise tax experts will assist you in implementing excise tax in your business effectively and efficiently. Xact Auditing is committed to providing extensive support and guidance to assist you with your excise tax obligations. Xact is providing the best VAT services and excise tax services in Dubai.

Xact Auditing of Accounts is covering the following scope of excise tax in UAE:

• Registration for excise tax
• Identification of the excise goods
• Excise tax returns (monthly)
• Excise tax consultancy
• Excise tax compliance system
• Stockpiling, inventory counting, and duty calculation advice
• Excise tax refunds
• De-registration from excise tax

The FTA has the power to conduct audits and impose penalties on those who are not compliant with their excise tax obligations. 

Businesses in UAE are urged to stay up to date with further excise tax developments including clarifications and guidelines by the FTA on standards and procedures for implementing excise tax on the new products. 

Entities can also register the above-mentioned products on the updated electronic system of the FTA. Xact will help you in carefully accessing the excise tax compliance and obligation required by the FTA. For excise tax services, contact us.

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