Excise Tax Support in the UAE

Excise tax is a consumption tax applied to specific goods that are considered harmful to health or the environment. In the UAE, it is administered by the Federal Tax Authority (FTA) and applies at the point of production, import, or release from a designated zone.

The tax rates vary by product category under current regulations - with higher rates on products like tobacco and energy drinks, and lower rates on carbonated and sweetened beverages.

Excise tax is separate from VAT. Businesses dealing in excise goods may be subject to both taxes. The excise tax is applied first, and VAT is then calculated on the excise-inclusive price.

Step 1: Determine whether excise tax applies to your products. Review your product inventory against the excise goods categories.

Step 2: Register with the FTA. Businesses that produce, import, or store excise goods must register through the EmaraTax portal.

Step 3: Implement digital tax stamps. Under current regulations, certain excise goods must carry digital markers that enable tracking and verification.

Step 4: File quarterly excise tax returns. Registered businesses must file returns on a quarterly basis through EmaraTax.

Digital tax stamps are a key compliance element for excise goods in the UAE. The system involves:

• Registration with the FTA's digital tax stamp platform
• Integration of stamp application into your packaging or production process
• Reporting and tracking of stamped products
• Compliance verification by the FTA through the stamp system

Implementation requires coordination between your production or import operations and the FTA's technical requirements.