Excise Tax Advisory Services in the UAE
Excise Tax is a form of indirect tax levied on specific goods that are considered harmful to human health or the environment. In the UAE, Excise Tax applies to products such as tobacco, energy drinks, and carbonated beverages.
Specialized Excise Tax Support by Sapphire Ocean LLC
At Sapphire Ocean LLC, we offer expert Excise Tax advisory and compliance services, ensuring your business stays fully compliant with UAE Federal Tax Authority (FTA) regulations while optimizing operational efficiency.
What is Excise Tax in the UAE?
Introduced in October 2017, Excise Tax is applicable to:
Tobacco products – taxed at 100%
Energy drinks – taxed at 100%
Carbonated drinks – taxed at 50%
Electronic smoking devices and liquids – taxed at 100%
Sweetened drinks – taxed at 50%
Excise Tax is charged at the point of production or importation, and businesses dealing with excise goods are required to register with the FTA, file periodic returns, and maintain detailed records.
Our Excise Tax Services
We offer a complete package of Excise tax solutions designed to support businesses across the UAE.
Excise Tax Registration & Deregistration
We assist your business in registering with the FTA for Excise Tax and handle deregistration when applicable.
Compliance & Return Filing
Timely preparation and submission of Excise Tax returns, ensuring accuracy and avoidance of penalties.
Tax Assessment & Risk Review
We review your operations, supply chain, and documentation to identify any areas of tax exposure or non-compliance.
Product Classification Support
Proper classification of your products is critical for applying the correct excise rates. We ensure full compliance with FTA guidelines.
FTA Audit Support & Representation
If you’re subject to an Excise Tax audit, we represent your business before the FTA, manage documentation requests, and resolve queries.
Warehouse & Designated Zone Advisory
Guidance on registering and operating designated zones and excise warehouses, including inventory controls and movement procedures.
Faq
Frequently Asked Questions
What is Excise Tax?
Excise Tax is an indirect tax levied on products that are harmful to health or the environment. In the UAE, it is applied to tobacco, energy drinks, carbonated beverages, electronic smoking devices, and sweetened drinks.
Which products are subject to Excise Tax in the UAE?
As per UAE Federal Tax Authority (FTA) regulations, the following products are taxable:
| Product Type | Excise Tax Rate |
|---|---|
| Tobacco and tobacco products | 100% |
| Energy drinks | 100% |
| Electronic smoking devices & liquids | 100% |
| Carbonated drinks | 50% |
| Sweetened drinks | 50% |
Who needs to register for Excise Tax?
You must register for Excise Tax if your business:
Imports, produces, or stockpiles excise goods
Releases excise goods from a designated zone
Operates a warehouse storing excise goods
Exports excise goods in a tax-suspended state
Even if you do not sell these goods directly, warehousing or importing them may trigger an obligation to register.
How is Excise Tax calculated?
Excise Tax is calculated based on the retail selling price of the product or the standard price list published by the FTA, whichever is higher. It applies at the point of production, importation, or stockpiling.
What are the penalties for non-compliance with Excise Tax?
FTA imposes significant penalties for:
Late registration or return filing
Inaccurate declarations
Improper record-keeping
Unregistered stockpiling or release of excise goods
Penalties may include fixed fines and percentage-based penalties on the unpaid tax.
Ensure Full Compliance & Avoid Penalties
Excise Tax compliance is complex, with high penalties for non-compliance. Let Sapphire Ocean LLC simplify the process and help you stay ahead of all regulatory requirements.
📞 Contact us today for a personalized consultation or to learn more about our Excise Tax services in the UAE.