Excise Tax Services
Registered Tax Agent Regulated by the FTA (Federal Tax Authority)
Excise Tax Services in UAE
Get registration, classification, and monthly filing right for every excisable product you handle.
Excise Tax is an indirect tax imposed on specific goods considered harmful to human health or the environment, including tobacco products, electronic smoking devices, energy drinks, carbonated beverages, and sweetened drinks. Farahat & Co. is a registered FTA tax agent providing complete excise tax services for businesses across the UAE, covering the full compliance cycle from initial registration through to ongoing filing and penalty review.
- FTA registration: full registration support and Tax Registration Number issuance through EmaraTax.
- Monthly compliance: accurate return filing and ongoing regulatory monitoring.
- Product classification: correct rate determination across tobacco, vapes, energy drinks, and sweetened beverages.
- Penalty review: audit support and correction of existing compliance gaps.
Whether you’re producing, importing, storing, or distributing excise goods, our team structures your compliance around the specific point in the supply chain where your obligation actually arises.
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What Is Excise Tax in the UAE?
Excise Tax is a federal indirect tax levied on the production, import, or release from a designated zone of specific goods considered harmful to health or the environment. It was introduced in October 2017 under Federal Decree-Law No. 7 of 2017 on Excise Tax, which remains the current governing legislation. The tax serves a dual objective: discouraging consumption of harmful products while generating public revenue for the government.
Unlike VAT, excise tax is applied at the stage of production or importation rather than directly on the end consumer at the point of sale, which means it is embedded in the retail price by the time the product reaches the shelf. The Federal Excise Tax Law defines the specific goods covered, applicable rates, exemptions, and the compliance requirements businesses must follow throughout the supply chain.
Who Must Register for Excise Tax in the UAE?
Producers and Manufacturers
Importers
Stockpilers
Warehouse Keepers, Distributors, and Retailers
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Excise Tax Registration Process
Determine Your Obligation
Gather Required Documents
Create an EmaraTax Account
Submit the Application
Receive Approval and TRN
Discuss Your Excise Tax Obligations
Excise Tax Rates and Calculation Method
Excise tax is calculated by applying the relevant rate to the retail selling price, import value, or production cost, whichever is higher, so the calculation basis can shift depending on where in the supply chain the tax point falls.
| Product Category | Rate |
|---|---|
| Tobacco and Tobacco Products | 100% |
| Electronic Smoking Devices and Tools | 100% |
| E-liquids Used in Vapes | 100% |
| Energy Drinks | 100% |
| Carbonated Drinks | 50% |
| Sugar-Sweetened Drinks | 50% |
As a worked example, a company importing an energy drink with an import value of AED 10 per can faces an excise tax of AED 10 per can at the 100% rate, bringing the post-tax retail price to AED 20 before any further margin is applied. The FTA also applies a tiered volumetric model for certain products, where tax is calculated based on quantity or sugar content rather than value alone, which businesses selling sweetened beverages in particular need to account for in pricing.
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Penalties for Excise Tax Non-Compliance
Registration Failures
Late Payment
Filing and Record-Keeping
Other Violations
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Designated Zones and Ongoing Excise Tax Compliance
Certain Designated Zones in the UAE may qualify for excise tax exemptions depending on the nature of the business and the storage facility involved, but companies operating within these zones must still maintain detailed records demonstrating compliance with FTA requirements, since exemption status does not remove the underlying record-keeping obligation. Timely registration matters well beyond avoiding fines.
Many UAE licensing authorities review excise tax registration status during licence renewal, and registered businesses generally manage their supply chain more efficiently and with fewer disruptions than those operating without proper registration. Registered businesses must submit monthly returns, pay any tax due on time, and maintain accurate records of all excise goods throughout the supply chain, since ongoing compliance is treated as a continuous obligation rather than a one-time registration event.
Work With Farahat & Co.’s Excise Tax Team
As a registered FTA tax agent, we provide full excise tax services covering registration, product classification, monthly return filing, designated zone advisory, and penalty review, structured around where your business actually sits in the excise supply chain.
Correct product classification and rate determination is one of the most common areas where businesses get exposed to penalties, since the same underlying product can carry different tax treatment depending on its exact composition and intended use.
Our team manages the ongoing filing cycle so obligations don’t slip between registration and the next monthly return, and where a compliance gap has already occurred, we review the position and manage engagement with the FTA to resolve it as favourably as the facts allow.
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