Business Setup & Formation
Excise Registration
In 2017, the UAE introduced a distinct excise tax on tobacco products, sugary beverages, and carbonated drinks. The Federal Tax Authority (FTA) has since updated the excise rates and expanded the scope to include concentrated stocks starting from December 1, 2019. This adjustment in excise duties aims to support government initiatives to improve public health and reduce diseases linked to excessive sugar and tobacco consumption.
Businesses involved in importing, manufacturing, distributing, or storing the following excise goods are required to register for Excise Tax:
Sweetened Beverages
Energy drinks or any form of concentrate, powder, gel, or extract meant for preparing energy beverages
Carbonated drinks or any type of concentrate, powder, gel, or extract intended to produce fizzy beverages
Cigarettes
Electronic smoking devices (e-cigarettes)
E-liquids for use in electronic smoking devices, regardless of whether they contain nicotine or tobacco
Tobacco products
Products Not Subject to Excise Tax in the UAE
1) Ready-to-drink beverages with at least 75% milk or milk alternatives
2) Infant formula or baby food products
3) Drinks formulated for specific dietary requirements, as defined under Standard 654 of the GCC Standardization Organization for “General Requirements for Pre-packaged Foods for Special Dietary Use” and any later relevant standards
4) Beverages intended for medical purposes, as specified under Standard 1366 of the GCC Standardization Organization for “General Requirements for Handling Foods for Special Medical Purposes” and any subsequent applicable standards
How to Register for Excise Tax in the UAE ?
Registration for excise tax is mandatory for all businesses dealing with excise goods in the UAE. The process can be conveniently completed through the “Registrations” section on the FTA website. Simply log in or create an account on the FTA Excise Tax portal and follow the step-by-step instructions provided there.
Excise Registration Process in the UAE is as follows:
1) The business must register online through the Federal Tax Authority website: www.tax.gov.ae
2) The excise registration form will request specific business information as outlined in the Executive Regulations
3) The required documents include:
– 1. Emirates ID
– 2. Authorized signatory details
– 3. Certificate of incorporation
– 4. Articles of association
– 5. Bank account information
