Excise tax is an indirect tax imposed on goods that are harmful to human health or the environment.
What is Excise Tax?
The primary purpose of the excise tax is to reduce the consumption of unhealthy goods. It is levied on goods imported into, manufactured in, or stockpiled in the UAE.
Which products are subject to Excise Tax?
- Carbonated Drinks: Aerated beverages (except unflavored aerated water) and concentrates/powders used to make them.
- Tobacco and Tobacco Products: All items listed within Schedule 24 of the GCC Common Customs Tariff.
- Energy Drinks: Beverages containing stimulants like caffeine, taurine, ginseng, and guarana.
Scope of Excise Tax
A person must register and pay excise tax if they are involved in:
- Importing excise products.
- Producing or manufacturing excise goods.
- Transferring excise products out of a Designated Zone.
- Stockpiling excise goods in the normal course of business.
- Selling excise goods in the UAE (tax included in sale price).