Excise Tax Return

In 2017, the UAE government introduced the excise tax as a measure to diversify its revenue and curb the consumption of products detrimental to health or the environment. This indirect tax applies to various goods, including electronic smoking devices, tobacco products, carbonated and energy drinks, and sweeteners.

Excise Tax Rates in the UAE

The excise tax rates in the UAE are as follows:

• 50% on carbonated drinks
• 100% on tobacco products
• 100% on energy drinks
• 100% on electronic smoking devices
• 100% on liquids for electronic smoking devices
• 50% on sweeteners and added sugars

Excise tax is applied at the point of import, production, or when goods are released from an excise warehouse or designated zone into the UAE market. Businesses involved in these activities must register for excise tax and make payments through the Emaratax portal, the Federal Tax Authority’s official website.

Important Deadlines

Excise tax returns must be submitted by the end of each month, covering the activities of the previous month. Payments for the excise tax are due by the end of the month following the submission of the return. Businesses are also required to maintain records for a minimum of five years. It is advisable to submit a registration application at least 30 days before commencing any excise tax-related activities. Failure to pay excise tax on time can result in penalties and fines, which vary based on the delay and individual circumstances. The Federal Tax Authority (FTA) will issue a penalty notice outlining the specifics of any penalties or fines imposed.

Weekend or Holiday Adjustments

In case the deadline coincides with a weekend or a national holiday, it will automatically shift to the subsequent first working day for your convenience. Follow these steps and deadlines to ensure compliance and efficient handling of your excise tax obligations on the Emaratax portal.

Expert Assistance Available

For a smooth registration and compliance process, the professional team at Ismail Hajeir is here to help. Contact us to have our experts handle your excise tax management needs, ensuring that everything is processed efficiently and accurately.