Excise Tax Registration Dubai: Complete Guide for UAE Businesses
Registration for tax on excise is a requirement for companies that are involved in the production of, importation of, or stockpiling of excise-related goods from the UAE. No matter if you deal in carbonated beverages, tobacco products or energy drinks, having your tax registration completed UAE will ensure compliance with Federal Tax Authority (FTA) regulations.
Inability to register can be a source of penalties, making it crucial for companies to know the procedure. In this article we’ll provide all the information you must know about the excise tax registration in the UAE, such as eligibility requirements as well as procedures and advantages.
What is Excise Tax?
Excise Tax in the UAE is an indirect tax imposed on items that are considered to be harmful to the health of humans. This includes:
- Energy drinks and carbonated drinks
- The tobacco industry and its products
- E-cigarettes
- Drinks sweetened with sugar
Excise Tax compliance is often part of a broader tax strategy for UAE businesses. Companies should also understand the fundamentals of Corporate Tax in UAE, including registration requirements, taxable income calculations, and ongoing compliance obligations to avoid regulatory issues and financial penalties.
Companies that produce, import or store these products must be in compliance with the excise tax registration requirements as per UAE Federal Law No. (19) of 2022. Tax compliance with the law ensures that businesses meet their legal requirements and stay clear of penalties.
To make the process easier, businesses can take advantage of tax exempt services that include registration, compliance and assistance with filing. Be sure that your business is in compliance with tax laws by contacting a professional immediately!
Read our guide on How to Check Validity Tax Registration Number in UAE.
Understanding Excise Tax Services and Rates
Companies that deal with excise products need to register for tax exemption in the UAE in order to conform to the Federal Tax Authority (FTA). Registration for tax registration in the UAE is applicable to producers as well as importers and stockpilers of excise-related goods.
Understanding the relationship between different tax systems can help organizations make informed decisions. Our article on Who Benefits from VAT provides insights into how taxation contributes to economic growth and business transparency.
Rate of Excise Tax in UAE
As per cabinet decision No.52 of 2019, the tax registration law requires the tax rates that follow:
50% off carbonated beverages
100% of tobacco products
100% off energy drinks
100% of electronic smoking devices
100% of liquids that are used in electronic smoking devices.
50% off any item that contains sweeteners or sugars added
Updated Excise List and Tax Rates
50% off sweetened drinks
100% electronic devices for smoking and equipment
100% of the liquids used in electronic smoking devices.
For companies, making sure they are in compliance with taxation services for excise is vital for avoiding penalties. Assistance from a professional in tax registration can help companies comply with regulations effectively.
What's the Excise Tax and its tax rates in the UAE?
Taxes for excise are in the following order:
- The tobacco industry and its products 100 100% (from the 1st of October 2017)
- Liquids that are used in electronic smoking tools and devices 100 percent (from an expiry date that will later be decided by the Minister
- Electronic cigarettes and equipment 100 percent (from when the day will be decided by the Minister)
- Drinks with carbonated ingredients 50 percent (from 1 October 2017)
- Drinks with 100% energy 100% (from 1 October 2017)
- Drinks with sweeteners 50 percent (from when the day will be decided by the Minister)
Although it is a tax that is indirect, the manufacturer or importer is required to pay it to the government and then pass it on to the consumer along with the retail price.
Businesses dealing with excise goods frequently require integrated tax support beyond Excise Tax registration. Professional Corporate Tax Services in Dubai can help organizations manage tax registrations, assessments, return filing, and compliance requirements under the UAE’s evolving tax framework.
When to Register for Excise Tax?
According to the Federal Tax Authority (FTA), anyone who is involved in any of the actions associated with excise-related goods, you need to be registered for tax on excise.
a). Importing Excise Goods
Every business that exports goods subject to excise tax in the UAE is tax evasion. This means that any imports of tax-exempt products into the UAE need to register regardless of how much.
b). Producing Excise Goods
If a business produces or manufactures products that fall within the category of excise products in the UAE for commercial or other purposes must be registered.
c). Stockpiling Excise Goods
If you have excise-related goods in huge quantities for commercial sales regardless of how often you trade, you must register, i.e., any retailer that stores a significant quantity of energy drinks in preparation for events of a significant size could be subject to this obligation in the event that the items are not taxed prior to.
d). Operating a Tax Warehouse
If you own an excise warehouse that is designated (authorised by FTA), you must be registered for a position as Warehouse Keeper or the Tax Warehouse Owner.
Who does not have to sign a registration form?
The registration of tax on excise is not necessary if:
- You are the only end user of the tax products.
- You’re selling goods that are excised at retail price, but the products have already been assessed with tax (and you’re not importing or stockpiling).
- You are a logistic or transport company that is not a part of the ownership of the excise items.
Any particular threshold to register for Excise Tax?
There isn’t a threshold (unlike TVA) to be registered for Excise Tax registration. One tax-paying transaction must be registered. Registration must be completed prior to:
- You can import, manufacture or store excise-related goods
- You are able to start working in a tax warehouse that has been designated.
In the event of not registering prior to carrying out tax-deductible activities, it could result in penalties and tax liabilities that are not due until the date of date.
Documents required for registration
To complete Excise Tax registration through the FTA’s online portal, you must:
- Copy of the Trade License
- Passport Emirates ID number of owner(s)/manager
- Contact details (email, mobile)
- Account at the bank (IBAN)
- Customs code and the location of the customs office when importing.
- The nature of the excise activities (with the list of products)
- Warehouse information where relevant
To register for the Warehouse Keeper/Tax Warehouse, other documents might be required. For example.
- Floor plans for warehouses
- Lease agreements
- Security plans
In relation to the return filing process and the timeframe for payment
The tax return on excise taxes must be filed every month on the FTA portal after registration. All activities that are related to excise-related goods in April 2025, tax returns’ filing and payment have to be submitted by or before May 15th, 2025. This means that each month prior to the 15th of May, filing and payment has to be completed.
Companies registering for Excise Tax should also stay informed about important tax deadlines. Our article on the Corporate Tax Registration Deadline explains key compliance requirements that every UAE business should understand.
Information on penalties for non-compliance
Inability to register or to comply with Excise Tax obligations can lead to substantial penalty charges: The penalties of tax on excise will be in the equation if you are not registered, and, if not comply with.
- Inability to register the excise tax of AED 10,000
- Taxpayers who file late on their excise tax return due to late filing AED 1000 (first offense), AED 2000 if repeated.
- Tax due for late payment is 2% of tax not paid, and after 7 days, it’ll be 4 percent of the unpaid tax.
- Incorrect excise returns. If it is the first time, the amount will increase to AED 3000 and, in the event of repeated errors in the future, it will increase to AED 5000.
If there is a serious infraction of the excise tax discovered by the FTA, the authority may conduct audits and tax back-dated amounts and can stop your business.
What are our ways to support you?
The Flying Color Tax Consult LLC Flying Color Tax Consultant LLC assist businesses by providing:
- Registration of tax on excise and aid
- Eligibility checks and product classifications
- Assistance with filing monthly returns
- The creation of the Tax Warehouse that is subject to FTA sanctions
- Audit preparation and assessments of compliance
Our primary goal is to help your company to ensure that it’s in compliance with the tax laws, so that any penalties be avoided, while focusing on the expansion of your company.
Conclusion
The registration of tax on excise in the UAE is mandatory for firms involved in the production or import, production or stocking of items such as tobacco products, energy drinks and sweetened drinks. The registration does not depend on any specific threshold. It’s solely based on transactions, which means that a single transaction is the reason why registration is required. To determine if you have to sign up or to learn how to start, you should consult an experienced tax professional whenever you can.
Selecting the right financial partner can simplify tax compliance and reporting requirements. Working with a top accounting company in Dubai ensures businesses receive expert guidance on Excise Tax, VAT, and Corporate Tax obligations.
Need Help With Excise Tax Registration?
In addition, Caviar accounting can make it easier for you to complete tax compliance. Contact us for assistance from a professional in regard to tax on excise, corporate tax, and Value-added taxes within the UAE.
To find out more regarding Excise taxes in the UAE, who is required to be registered and when, make an appointment for a complimentary appointment with one of our Flyingcolour Team advisors.
Disclaimer: Information contained on this site is based on our knowledge of the current legislation and rules governing taxation. This blog is to provide general information only and does not provide professional tax advice, consulting or any representation. The authors and the publishers are not responsible for any mistakes or omissions, nor for any actions in reliance on the information on this website.
