Excise Tax Registration & Compliance in the UAE

Tobacco and tobacco products, electronic smoking devices and tools, the liquids used in them, energy drinks, carbonated drinks and sweetened drinks. Whether a particular product falls into a category depends on its ingredients and characteristics, so drinks in particular should be checked product by product. Rates and the basis of calculation are set by the authorities and have changed over time, so we confirm the current treatment for each product.

You must register if you import excise goods into the UAE, produce them here, stockpile them above the threshold, or operate a warehouse in a designated zone where excise goods are held. Businesses that only buy goods locally on which excise has already been paid, and sell them on, are generally not required to register. We review your activities and confirm the position before you apply.

A designated zone is a fenced, controlled area — usually within a free zone — that has been specifically designated for excise purposes. Excise goods held there can be under tax suspension until they are released into the UAE market, at which point excise becomes due. Warehouse keepers in these zones must register and keep detailed records of goods entering, leaving and moving between zones.

Registered businesses file excise returns through EmaraTax for each tax period, reporting the excise goods released for consumption, imported or produced, and any deductible excise, and pay the tax by the statutory deadline. Separate declarations apply to certain movements, such as goods entering, leaving or moving between designated zones. Accurate returns depend on stock records that reconcile with production, purchases and sales.

In some cases. Where excise has been paid on goods that are then exported, or used to produce other excise goods, the excise may be deductible or refundable, subject to the conditions and evidence the FTA requires. The export evidence and stock records need to line up, which is a common weak point. We assess what is claimable and prepare the supporting file.

We review a sample of past returns and declarations against your stock, production, import and sales records, check product classification and the basis used to calculate excise, and test designated zone movements and any deductions claimed. You receive a list of findings with the tax effect, and we prepare voluntary disclosures where errors need correcting.