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Excise tax
Excise Tax
Liabilities in Dubai

Leading the market in Excise Tax Services in Dubai, our Expert
Excise Advisors help you optimize your tax liabilities.

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Excise tax
Excise Tax
Liabilities in Dubai

Leading the market in Excise Tax Services in Dubai, our Expert Excise Advisors help you optimize your tax liabilities.

GET FREE CONSULTATION

Optimize Your Excise Tax Liabilities in UAE

Excise tax is a form of indirect tax levied on specific goods which are typically harmful to human health or the environment. In 2017 the UAE Government imposed the excise tax law to safeguard the health of its residents. What we consume on a daily basis is one of the keys to a healthy lifestyle and in an effort to promote a healthier country and discourage consumption, the excise tax was levied on specific products that are regarded as harmful to our health. Most recently, Cabinet Decision No. (197) of 2025 – effective 1 January 2026 – replaced the flat-rate excise tax on sweetened drinks with a tiered, sugar-based model designed to encourage reformulation toward healthier products. Excise Tax is the most complex and challenging indirect tax in the United Arab Emirates and is carefully monitored by the Federal Tax Authority (FTA), which continues to refine its rules – most recently through the new tiered-volumetric model for sweetened drinks.
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excise tax registration in uae

What Goods Are Considered Excisable?

  • Tobacco and Tobacco Products: All items listed within Chapter 24 of the GCC Common Customs Tariff, including cigarettes, cigars, tobacco products, and electrically heated cigarettes.
  • Electronic Smoking Devices: All electronic smoking devices and tools, including e-cigarettes, vaping devices, and all liquids used in such devices, whether or not they contain nicotine or tobacco.
  • Liquids Used in Electronic Smoking Devices All liquids intended for use in electronic smoking devices, whether or not they contain nicotine, tobacco, flavorings, or any other substances.
  • Energy Beverages: Any beverage marketed or sold as an energy drink that contains stimulant substances providing mental or physical stimulation, including caffeine, taurine, ginseng, guarana, or substances with a similar effect. Energy drinks remain subject to Excise Tax at 100% of the Excise Price.
  • Sweetened Drinks Any beverage to which sugar or other sweeteners are added, as determined under the relevant GCC standards and UAE Excise Tax legislation. This also includes powders, gels, concentrates, extracts, and any other form that can be converted into a sweetened beverage. Effective 1 January 2026, Sweetened Drinks are now classified under the Tiered Volumetric Model as follows:
    • High-Sugar Category: 8 grams or more of sugar and other sweeteners per 100ml – AED 1.09 per liter.
    • Moderate-Sugar Category: 5 grams or more but less than 8 grams per 100ml – AED 0.79 per liter.
    • Low-Sugar Category: Less than 5 grams per 100ml – AED 0 per liter.
    • Artificially Sweetened Drinks: Containing only artificial sweeteners, or artificial sweeteners and less than 5g of total sugar and other sweeteners per 100 ml – AED 0 per liter.
Any powder, gel, concentrate, extract, or any other form that can be converted into a beverage is also considered as excisable good, and is assessed under the same tiered-volumetric sugar content model as ready-to-drink sweetened beverages.

Who Needs to Register for Excise Tax?

Businesses who intend to:
  • Import
  • Produce
  • Stockpile
  • Warehouse Keeper
are required to register for an Excise TRN a minimum of 30 days before the start of their operation. Businesses dealing in sweetened drinks must also ensure their products are registered with a valid Emirates Conformity Certificate ahead of the 1 January 2026 tiered-volumetric model taking effect. The Person who imports Excise Goods of value less than that specified in the Customs Legislation, if such Excise Goods are accompanied by the Person within the frame of an international voyage and are used for noncommercial purposes As leaders in Excise Tax Consultancy, our services are supported by our professional knowledge and first-hand experience to assist businesses to adhere to all FTA laws and regulations, including the latest Cabinet Decision No. (197) of 2025 tiered-volumetric model for sweetened drinks.

Emirates Conformity Certificate Requirement

From 1 January 2026, all producers, importers, and stockpilers of sweetened drinks must obtain an Emirates Conformity Certificate for Sugar and Sweeteners Content in Beverages from the Ministry of Industry and Advanced Technology (MoIAT), based on accredited laboratory test results. This certificate must be submitted to the FTA when registering or updating products on the Brandsync/EmaraTax platform. Products without a valid certificate are automatically treated as high-sugar (AED 1.09 per litre) for excise purposes. We help businesses manage lab testing, certification, and product (re)registration to ensure each SKU is taxed at the correct tier.

Excise Tax Rates in the UAE

excise tax rates for various exciseable goods in uae
excise

Sweetened Drinks

High-Sugar
Sweetened Drinks
More than 8g of
added sugar/100ml
1.09 AED/Liter
Moderate-Sugar
Sweetened Drinks
More than 5g to less
than 8g of added
sugar/100ml
0.79 AED/Liter
Low-Sugar
Sweetened Drinks
Less than 5g of added
sugar/100ml
0 AED/Liter
Artificially
Sweetened Drinks
Contain only artificial sweeteners, or artificial sweeteners and less than 5g of total sugar and other sweeteners per 100 ml
0 AED/Liter

Excise Services

Our Excise Tax Experts are here to alleviate the burden of producing, importing, stockpiling and selling excisable goods.
Businesses who intend to import, produce, or stockpile excisable goods must register within thirty days before the start of their operation. For sweetened drinks, this now includes obtaining the Emirates Conformity Certificate and registering each product under the correct sugar-content tier. Excise Tax Registration Requirements Businesses intending to undertake any of the following activities involving excise goods in the UAE are generally required to register for Excise Tax before commencing such activities:
  • Importing Excise Goods
  • Producing Excise Goods
  • Stockpiling Excise Goods
  • Operating as a Warehouse Keeper of a Designated Zone
The registration application should be submitted in advance to ensure that the Excise Tax Registration Number (TRN) is obtained before the commencement of the taxable activity. As leaders in Excise Tax Consultancy, we combine technical expertise with extensive practical experience to assist businesses in navigating Excise Tax obligations, obtaining registrations, maintaining compliance, and adhering to all applicable Federal Tax Authority laws, regulations, and procedures.

Businesses who stopped import, production, or stockpile of excisable goods must deregister within thirty days after the stop their business operation.

FTA authorized excise traders who are responsible for the receipt, storage and dispatch of excise goods of an FTA approved excise warehouse/ designated zone consisting of high security, CCTV guarded, with limited access of people that is closely monitored by the  FTA.

Clear guidelines and standards for properly registering new products to the local market, including the new sugar-content based registration requirements for sweetened drinks effective 1 January 2026. Calculate & establish the accurate retail pricing required to list items in Brandsync, reflecting the applicable tiered-volumetric excise rate (AED 0, 0.79, or 1.09 per litre) for sweetened drinks.

Newly introduced control scheme requiring tobacco manufacturers and stakeholders to comply with enhanced standards for the importation and trading of tobacco in the UAE by applying specific high security control markers (stamps) and codes.

As an Excise Tax registered entity, you will be responsible for the compliance of Excise filings and returns on a monthly basis as well as maintaining the financial books and additional Excise tax supporting documents, including conformity certificates and lab test results supporting the sugar-tier classification of sweetened drinks. Our Excise experts have a keen understanding of the laws and regulations. This ensures compliance and reduces your exposure to tax risks including levied fines and penalties.
As trusted Excise Advisors, our team of experts will discerningly review your case to ensure you meet the criteria for eligibility, compose your request for an Excise Tax Refund and submit your request to the FTA. This includes assessing eligibility for transitional relief on previously taxed sweetened drink inventory where the new tiered rate results in a lower liability.

Our Excise Tax Compliance Check is a diligent review of your currently established Excise systems and compliance by our Excise Experts, including readiness for the tiered-volumetric sweetened drinks model and Emirates Conformity Certificate requirements.

A meticulous analysis of your company’s tax compliance, executed by our proficient Excise Tax Agents to expose at-risk areas and provide skillful advice to establish solutions in accordance with the local tax laws and regulations. 

A registered Tax Agent is a highly qualified professional that takes full responsibility of your company’s tax obligations with the FTA, acting as a liaison between your business and the FTA through each complicated step of your tax obligations.  

If your application for reconsideration of FTA fines or penalties has been rejected and you disagree with that conclusion, you have the right to legal representation by a Tax Agent and to appeal with TDRC.

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