Excise Tax
Excise Tax is an indirect tax levied on imports and productions of specific goods in U.A.E. These goods are typically not good to human health or the environment. The intent of the tax is to discourage the consumption of these goods with increasing revenues for the government that can be spent on public beneficial services.
UAE applies a 50% Excise Tax on Sugar Sweetened Beverages (“SSBs”) and a 100% Excise Tax on electronic smoking devices and equipment, as well as on the liquids used in electronic smoking devices and equipment.
If you are engaged in importing, exporting, manufacturing, trading, storing or transporting excisable goods such as tobacco, alcoholic beverages, soft drinks and energy drinks, the new GCC Excise Tax system will have a significant impact on your business.
The importers, manufacturers and in certain cases other agents in the supply chain are liable to register for Excise Tax, submit periodical returns, pay the Excise Tax due to the local authorities and maintain specific Excise Tax records.