Excise Tax Services
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Excise And Taxation Services
Comprehensive Excise Tax Services UAE
The UAE’s excise tax rules move fast — the sugar-based tax overhaul that took effect on 1 January 2026 is proof of that. Businesses that manufacture, import, stockpile, or distribute tobacco products, energy drinks, e-liquids, carbonated drinks, or sweetened beverages need excise tax registration, accurate product classification, and on-time EmaraTax filing to stay compliant with the Federal Tax Authority. MHR Chartered Accountants provides complete excise tax services in Dubai and across the UAE — from FTA registration and product classification to monthly return filing, digital tax stamp compliance, and audit support — so your business avoids the AED 10,000 late-registration penalty and stays ahead of every regulatory change.
UAE Excise Tax Guide
Excise Tax Rates, Registration Rules & the 2026 Sugar Tax Update
Excise tax is a federal indirect tax the UAE introduced under Federal Decree-Law No. 7 of 2017 on goods that are harmful to health or the environment. Unlike VAT, excise tax has no minimum registration threshold — any business that produces, imports, stockpiles, or releases excise goods from a designated zone must register with the Federal Tax Authority (FTA) within 30 days of starting that activity, regardless of turnover.
| Excisable Product | Excise Tax Rate |
|---|---|
| Tobacco & tobacco products | 100% |
| Energy drinks | 100% |
| Electronic smoking devices & e-liquids | 100% |
| Sweetened drinks – high sugar (≥8g/100ml) | AED 1.09 per litre* |
| Sweetened drinks – medium sugar (5g–8g/100ml) | AED 0.97 per litre* |
| Sweetened drinks – low sugar (under 5g/100ml) or artificial sweeteners only | Exempt |
*Effective 1 January 2026, carbonated and sweetened drinks moved from a flat 50% rate to this tiered, sugar-based volumetric model (Cabinet Decision No. 52 of 2019, as amended by Cabinet Decision No. 99 of 2025). Sugar content must be verified through lab testing recognised by the Ministry of Industry and Advanced Technology — getting this classification wrong means over- or under-declaring excise tax on every litre sold.
Filing and deadlines: Excise tax returns are filed monthly through EmaraTax, due by the 15th day of the month following the tax period, with payment due at the same time. Businesses must keep excise transaction and inventory records for at least five years. Missing the 30-day registration window carries a fixed penalty of AED 10,000, and late filing or payment attracts additional percentage-based fines.
Producers and importers of cigarettes, waterpipe tobacco, and electrically heated tobacco products must also comply with the FTA’s Digital Tax Stamps (Marking) Scheme — every eligible pack sold in the UAE needs a registered digital stamp before it can legally enter the market. MHR Chartered Accountants helps clients get the excise tax registration, product classification, digital tax stamp compliance, and monthly EmaraTax filing right from day one, so nothing holds up your import or production licence.
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Why File Excise Tax In UAE?
In order to keep your company in compliance with UAE excise tax laws, our team offers end-to-end excise taxation services. We provide services that lead to minimum risks. We also cut expenses, and maximize your tax plan. At MHR we do everything from registration to reporting. We manage all facets of excise tax administration. These include filing, audit assistance, and ongoing compliance, so your company can concentrate on expansion while still adhering to all tax regulations.
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Excise Tax Services In Dubai, UAE
FAQS
Frequently Asked Questions
Excise tax is a tax levied on specific goods, such as tobacco, alcohol, and energy drinks. Businesses that import, produce, or sell these goods in the UAE are required to register for excise tax and ensure compliance with local regulations.
To register for excise tax, businesses must submit an application through the Federal Tax Authority (FTA) portal, providing the necessary documents and details about their business activities. We offer support throughout the entire registration process to ensure smooth compliance.
Failure to comply with excise tax regulations can lead to significant penalties, including fines, back taxes, and potential suspension of business operations. It’s crucial to stay compliant with filing and payment deadlines to avoid these penalties.
Excise tax returns must be filed on a monthly basis, with payments due within the first 15 days of the following month. Timely filing ensures compliance and avoids late fees and penalties.
Yes, we provide full support during excise tax audits and disputes. Our team assists in preparing documentation, responding to queries from the Federal Tax Authority, and ensuring that your business is fully compliant throughout the audit process.