Excise Tax is a form of indirect tax levied on certain goods that are harmful to health or the environment, such as tobacco products, energy drinks, and carbonated beverages, as well as luxury items like sweetened beverages and some tobacco products. The UAE implemented Excise Tax in 2017 to promote healthier living and reduce environmental impact.

Businesses that manufacture, import, or stock excise goods in the UAE must register for Excise Tax. If your business deals with any of the taxable goods, it is required to comply with the UAE Excise Tax laws and register with the Federal Tax Authority (FTA).

The standard Excise Tax rate is 50% on carbonated drinks and energy drinks, and 100% on tobacco products, e-cigarettes, and similar products. Rates may vary for different goods as per the classification of the products defined by the FTA.

Our Excise Tax services include registration, return filing, compliance checks, product registration, retail sales price amendments, digital tax stamps, refunds, and deregistration. We offer end-to-end support to ensure your business complies with all regulatory requirements.

To register for Excise Tax, businesses need to provide the following:

• Trade license
• Emirates ID of the business owner
• Passport copy of the business owner
• Proof of business address
• Import/export license (if applicable)
• Details of excise goods you deal with

Excise Tax returns must be filed on a monthly basis by the 15th of the following month. Businesses must submit their returns accurately and on time to avoid penalties.

If you notice an error orExcise Tax is calculated based on the retail price of the product or its cost price, depending on the nature of the goods. The FTA provides clear guidelines on how to calculate and report the excise duties on taxable goods. omission in a previously filed VAT return, you can submit an amendment. HayyaTax will assist with making the necessary corrections and submitting an amended VAT return to ensure full compliance.

Failure to comply with Excise Tax regulations can result in significant penalties, including fines for late registration, inaccurate return filings, or failure to maintain records. These fines can range from AED 1,000 to AED 50,000 or more, depending on the violation.

Yes, businesses that overpay Excise Tax or export excise goods outside the UAE may be eligible for refunds. We assist with the refund application process, ensuring all required documentation is submitted correctly to the FTA.

HayyaTax provides audit support for businesses subject to Excise Tax audits by the FTA. We ensure all your records are in order, assist with document submission, and help rectify any issues that may arise during the audit process.

Yes, if you discover any errors in your Excise Tax return after submission, you may need to amend it. HayyaTax can assist with submitting the amended return and ensuring that all adjustments are accurately reported to the FTA.

Deregistration is required if your business no longer meets the criteria for Excise Tax registration or if it ceases operations. HayyaTax will guide you through the deregistration process, ensuring that all necessary steps are completed to officially cancel your registration.