Taxation in the UAE is regulated at the federal level, ensuring uniform application of tax norms across all emirates. Exceptions include certain free economic zones (free zones) where special tax regimes apply.
The excise tax is an indirect tax levied on goods that may harm health or the environment. The tax is applied to goods such as:
1. Tobacco products (100%);
2. Liquids for electronic smoking devices (100%);
3. Electronic smoking devices (100%);
4. Energy drinks (100%);
5. Sweetened drinks subject to specific excise tax amounts depending on sugar content, including special calculation mechanisms for concentrates, powders, gels and extracts where applicable (Article 2 and Article 10 of Cabinet Decision No. 197 of 2025).
The excise tax is included in the cost of goods, and payment is made at the stages of production, import or market release.
The tax period is one calendar month, and the tax shall be paid no later than the 15th of the following month (Article 17 of Cabinet Decision No. 37 of 2017).
Registration for excise tax payment is mandatory for anyone producing, importing or st...