Introduction
UAE introduced the “Excise Tax” via Federal Decree-Law No. (7) of 2017, followed by the “Implementation of Excise Tax Rules” on specific goods, typically harmful to human health and the environment, which includes carbonated drinks, electronic smoking devices, liquids used in such devices & tobacco products listed in Schedule 24 of GCC Common Customs Tariff.
Applicable Rates
| Product Categories | Excise Rate |
| § Carbonated drinks; or § Products with added sugar or sweeteners. | 50% |
| § Tobacco products; § Energy drinks; § Electronic smoking devices; or § Liquids used in such devices and tools | 100% |
Businesses Required to Register for Excise Tax
Businesses engaged in the following activities are required to register as required by “Article 2 of UAE Federal Decree-Law No. 7 of 2017”:
- Import of excise goods into the UAE.
- Production of excise goods for consumption in the UAE.
- Stockpiling of excise goods in the UAE in certain cases.
- Businesses engaged in overseeing an excise warehouse.
How we can help
Insights have a dedicated team of professional, specialist in Customs & Excise Tax. Who can;
- Assist in registration under the Excise Law.
- Advice on structuring the business transactions,
- Provide assistance in Excise Tax audits & representing before Excise Tax authorities.
- Provide the Excise Tax training & legislative updates.
Courtesy:
Tax Advisory Services in KSA
