Excise tax registration and returns in the UAE
Excise tax applies to certain goods linked to health concerns, such as tobacco, energy drinks, carbonated drinks, sweetened drinks and electronic smoking devices. If you import, produce or stockpile these goods, you must register with the Federal Tax Authority (FTA) and file excise returns every month. We prepare your registration and returns and submit them through your EmaraTax account. Monthly returns start from AED 350 per month, and registration is AED 250 one-off (excl. VAT).
Who needs this
- Importers of tobacco products, energy drinks, carbonated or sweetened drinks
- Local producers and bottlers of excise goods
- Businesses that hold large stocks of excise goods
- Importers and sellers of electronic smoking devices and liquids
- Drinks companies affected by the sugar-based model from 1 January 2026
- Registered businesses that need help with monthly excise returns
What's included
- Check of whether your goods and activities require registration
- Excise tax registration on EmaraTax
- Product classification and review of the excise rate for each product
- Review of sugar content data for sweetened drinks under the tiered model
- Monthly excise return preparation and submission
- Calculation of excise due on imports, production and stock movements
- Set-up of excise records that tie to your stock and accounts
- Support with FTA questions about your registration or returns
Documents we'll ask for
- Trade licence and details of the authorised signatory
- Customs registration details and import declarations
- Product list with specifications, and sugar content details for drinks
- Sales and purchase invoices for excise goods
- Stock records by warehouse or location
- Business bank account details
How it works
- Step 1
Assess your products and activities
We review what you import, produce or hold, classify each product, and confirm whether you need to register and which rate or tier applies.
- Step 2
Register with the FTA
We prepare your excise registration and submit it through your EmaraTax account, then deal with any FTA questions until it is approved.
- Step 3
Set up records
We set up product codes, stock tracking and accounting entries so excise due can be calculated from your normal records each month.
- Step 4
File monthly returns
Each month we calculate the excise due, prepare the return, and submit it through EmaraTax once you approve it, so you can pay on time.
Which goods carry excise tax
Excise tax is charged at 100% on tobacco products, energy drinks and electronic smoking devices and liquids. Carbonated drinks are charged at 50%. These rates apply to goods imported into the UAE or produced here for the local market.
From 1 January 2026, sweetened drinks moved to a tiered model based on sugar content. Instead of one flat rate, the excise due now depends on how much sugar a drink contains, so drinks with less sugar fall into a lower tier. Producers and importers need reliable sugar content data for every product.
Classification is where many errors start. A drink can fall into a different category after it is reformulated, and similar products from different suppliers may be treated differently. We check each product against the rules before you register and whenever you add new lines.
Who must register for excise tax
You must register for excise tax if you import excise goods into the UAE, produce them here, or stockpile them. Stockpiling means holding excise goods in quantities larger than you need for your normal business, for example ahead of a rate change.
In many cases, a business that only buys excise goods locally from a registered supplier and sells them on does not need to register, because the excise has already been accounted for higher up the supply chain. Your exact position depends on your activities, so we confirm it before you apply.
If you hold excise goods in warehouses, or move them between locations, your records need to show where the goods are and when they are released for sale. That is what your monthly return is built on.
Monthly excise returns
Registered businesses file excise returns monthly. Each return reports the excise goods you imported, produced or released during the month and the tax due on them. The figures need to agree with your customs declarations, production records and stock movements.
The most common problems are stock that does not reconcile, products coded to the wrong category, and returns based on estimates instead of actual movements. We reconcile your stock and sales each month before preparing the return, and keep a record of how each figure was worked out.
From 14 April 2026, revised penalties apply to excise tax under Cabinet Decision No. 129 of 2025, including a new way of charging for late payment. Filing and paying on time every month is the simplest way to avoid them.
Excise tax and VAT together
Excise tax and VAT are separate taxes with separate returns. VAT at 5% is charged on the selling price including excise, so an error in your excise figures can also affect your VAT return.
We prepare both returns from the same set of records, so the numbers agree. If you are not yet VAT registered, we also check whether your sales of excise goods take you over the AED 375,000 mandatory VAT registration threshold.
Penalties and risks to avoid
Late payment of excise tax
From 14 April 2026, under Cabinet Decision No. 129 of 2025, late payment is charged at 14% per year, calculated monthly. This replaced the earlier 2% plus 4% monthly regime. Check the FTA penalty table for your case.
Correcting errors after filing
Under the revised rules, voluntary disclosure penalties have dropped to around 1% per month of the tax difference. Some fixed penalties also changed.
Long FTA review window
In cases of evasion or non-registration, the FTA audit window can extend up to 15 years.
Questions about excise tax
What is the excise tax rate in the UAE?
Excise tax is 100% on tobacco products, energy drinks and electronic smoking devices and liquids, and 50% on carbonated drinks. Since 1 January 2026, sweetened drinks follow a tiered model based on sugar content.
Do I need to register for excise tax if I only sell excise goods locally?
Often not, if you buy from a registered supplier and only resell. Registration is required for importers, producers and stockpilers. We can check your activities and confirm.
How often are excise tax returns filed?
Excise tax returns are filed monthly through EmaraTax.
How did the sugar tax change in 2026?
From 1 January 2026, sweetened drinks moved to a tiered volumetric model, where the excise due depends on sugar content instead of one flat rate. Producers and importers need sugar content data for each product.
How much does excise tax registration cost?
Our excise registration fee is AED 250 one-off (excl. VAT), the same as our standard registration fee. Monthly excise returns start from AED 350 per month (excl. VAT).
Is excise tax the same as VAT?
No. They are separate taxes with separate registrations and returns. VAT at 5% is charged on the price including excise.
Get a price for excise tax
Pick your services, answer a few questions and get an itemised estimate in AED. An accountant confirms a fixed fee within one working day.