VAT Services
Excise tax is an indirect tax that is imposed on certain items. These are usually things that are hazardous to people's health or the environment. The main goal of the tax is to discourage the consumption of certain goods while simultaneously generating income for the government to spend on important public services. According to Federal Decree-Law No. (7) of 2017, excise tax came into effect on October 1, 2017.
Excise goods are carbonated beverages, energy drinks, and tobacco products.
Here are the excise tax rates in the UAE
There is no threshold requirement currently to register for Excise tax. However, if the FTA is convinced that the person does not import excise goods or release excise goods from designated zones regularly, he may be entitled to an exemption from registration
A designated zone is any fenced area designed to be a free zone that can only be entered or exited through an authorized route, as well as any place defined by the Authority as being under the control of a Warehouse keeper. For example, the Jebel Ali Free Zone and the SAIF Free Zone. Even if sold in a free zone, excise goods are not subject to tax until they leave the designated zone or are introduced for consumption. For excise tax reasons, a designated zone is considered as if it were outside the UAE.
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