In the UAE, the excise tax was imposed on tobacco and tobacco products, energy drinks, and carbonated drinks. The nation had chosen to levy an excise tax on all e-cigarettes, e-liquids, and sweetened beverages that signed and ratified this January. With this implementation, a substantial change has been observed in firms that produce, supply, or export them.
The Federal Tax Authority of UAE has made an effort and declared an entirely new registration procedure and has called on concerned businesses to register their products on the FTA’s system.
Accordingly, the Tax is applied as follow:
According to Cabinet Decision No. 52 of 2019 on Excise Goods, Excise Tax Rates and the Methods of Calculating the Excise Price, the excise tax rate is as follows:
Under the UAE Federal Decree-Law No. 7 of 2017 on Excise Tax, registering for excise tax is the responsibility of any business engaged in:
Importers, producers, Stock pilers, warehouse keepers, etc. that deal with electronic smoking devices and liquids that are used in such tools along with sweetened drinks need to register to Excise Tax system. Failure in registering within the specified period can lead to fines and various other obstacles.
Businesses are required to monitor further Excise tax developments on Standards and Procedures for implementing the Tax on the products.
AM Audit will be glad to help you with any queries regarding your business.