Excise Tax is levied on specific goods that are harmful to human health or the environment. Excise Tax often included in the price of the product which are paid at purchases. The UAE government introduced excise Tax on Carbonated drinks, Tobacco products and energy drinks in 2017 and on e-cigarettes, e-liquids and several Soft drinks, commencing from December 1, 2019 to reduce consumption of unhealthy and harmful commodities, simultaneously raising government revenues that can be used for public services.
Therefore, it is mandatory for businesses dealing with excise goods to register under the system of excise taxes in the UAE. Importers, manufacturers, stockpilers and warehouse keepers of excisable goods are liable to pay Excise Tax under The Federal Decree-Law No. 7 of 2017 on Excise Tax. We, VATBOX can advice you on your obligations under Excise Tax and support in filing clarifications with FTA and assist in Excise Tax registration and all its compliance requirements.