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Getting Ready for Excise Tax in UAE

It is important to understand any potential obligations you or your business may have under the UAE Excise Tax Law. The FTA is committed to providing extensive support and guidance to assist with this, however the responsibility lies with the business to make sure that any required compliance obligations are fulfilled. The FTA does have the power to conduct audits on taxable persons and subsequently impose penal measures on those that are not compliant with the law.

Excise Tax will be introduced across the UAE in the fourth quarter of 2017. The rates to be applied in the UAE will be:
  • 50% for carbonated drinks

  • 100% for tobacco products

  • 100% for energy drinks

These goods are referred to as “excise goods”. When considering whether a product is an excise good, the following definitions apply:​​

Carbonated drinks include any aerated beverage except for unflavoured aerated water. Also considered to be carbonated drinks are any concentrations, powder, gel, or extracts intended to be made into an aerated beverage Energy drinks include any beverages which are marketed, or sold as an energy drink, and containing stimulant substances that provide mental and physical stimulation, which includes without limitation: caffeine, taurine, ginseng and guarana. This also includes any substance that has an identical or similar effect as the aforementioned substances. Also considered to be energy drinks are any concentrations, powder, gel or extracts intended to be made into an energy enhancing drink.

Tobacco and tobacco products include all items listed within Schedule 24 of the GCC Common Customs Tariff.