Excise Tax Registration

UAE excise tax has been in force since 2017. It applies to importers, manufacturers, and stockpilers of specific goods — tobacco, e-cigarettes, energy drinks, carbonated drinks, and sweetened beverages. If you deal in these products in the UAE, registration with the FTA is mandatory before you begin. Affinitas handles the full process.

100% Excise tax on tobacco & e-cigarettes · 100% Excise tax on energy drinks · 50% Excise tax on carbonated & sweetened drinks · Monthly Excise tax return filing frequency

⚠ Registration required before activity begins: UAE excise tax registration must be completed before importing, producing, or stockpiling excisable goods. Retroactive registration does not eliminate the liability or penalties accrued in the unregistered period.

UAE Excise Tax: Products, Rates & Scope

UAE excise tax is a targeted tax on specific product categories — applied to reduce consumption of products with negative health or environmental consequences. Unlike VAT, it is collected by the person releasing the product for consumption in the UAE.

Excise tax is calculated on the retail selling price (for tobacco) or a designated retail sale price prescribed by the FTA (for beverages). Source: Federal Decree-Law No. 7 of 2017 and Federal Decree-Law No. 19 of 2022 (Amendment).

Who Is Required to Register for UAE Excise Tax?

Excise tax registration is mandatory for any person who engages in the following activities in relation to excisable goods in the UAE.

Importers: Any business importing excisable goods into the UAE — whether for sale, distribution, or use — must register before the first import. The tax is payable on import.

Producers & Manufacturers: Any business producing or manufacturing excisable goods within the UAE — including tobacco products, beverages, and e-cigarette liquids — must register.

Stockpilers: Businesses holding excisable goods in excess of a specified quantity (for which excise tax has not yet been paid) at the time the regulations came into force.

Warehouse Keepers: Operators of designated excise tax warehouses (DTW) — where excisable goods can be stored under suspension of excise tax liability — require separate registration and authorisation.

Digital Tax Stamps — Tobacco: The UAE FTA requires physical digital tax stamps containing a QR code to be affixed to all tobacco products imported into or produced in the UAE before they enter the market. Tobacco importers and manufacturers must be enrolled in the Digital Tax Stamp scheme as part of excise tax compliance. Affinitas advises on digital stamp requirements as part of the excise tax registration engagement.

Excise Tax Registration & Ongoing Compliance

Affinitas manages excise tax registration through the FTA EmaraTax portal and advises on ongoing compliance obligations — including monthly return filing, inventory management, and digital stamp requirements.

Product Classification Review: Affinitas confirms whether your specific products fall within an excisable category — including edge cases such as health beverages, fortified drinks, and specific tobacco product types.

Registration via FTA EmaraTax: Full FTA excise tax registration including entity information, product categories, expected volumes, and any designated tax warehouse authorisation required.

Monthly Return Preparation: Excise tax returns must be filed monthly, within 15 days of the month end. Affinitas prepares and files returns based on your import, production, and release-for-consumption records.

Digital Tax Stamp Compliance: For tobacco importers and manufacturers, Affinitas advises on Digital Tax Stamp scheme enrollment, ordering, and affixing requirements — ensuring compliance before goods enter the market.

Inventory & Record Management: Excise tax compliance requires detailed inventory records distinguishing taxed and untaxed goods. Affinitas advises on record-keeping requirements and system configurations.

FTA Audit & Enquiry Support: Where the FTA raises excise tax queries or conducts an audit, Affinitas prepares responses and documentation and represents the client throughout the process.

Frequently Asked Questions: UAE Excise Tax 2026

Who must register for UAE excise tax?

Any person who imports, produces, or stockpiles excisable goods in the UAE must register with the FTA for excise tax before commencing that activity. This includes importers, manufacturers, and warehouse keepers of tobacco and tobacco products, e-cigarettes and liquids, energy drinks, carbonated drinks, and sweetened beverages. Registration cannot be completed retroactively without incurring penalties.

What is the excise tax rate on e-cigarettes in the UAE?

E-cigarettes, electronic heating devices, and the liquids used in them (including nicotine-free liquids) are all subject to 100% excise tax in the UAE. This applies to both the devices and the liquids, and to both domestic production and imports. The 100% rate was introduced with effect from January 2020 under Federal Decree-Law No. 19 of 2022.

When are UAE excise tax returns due?

Excise tax returns must be filed monthly through the FTA EmaraTax portal, within 15 days following the end of each calendar month. Payment of excise tax is due at the same time as the return filing. Late filing or payment carries significant FTA penalties. Affinitas prepares and files monthly excise returns from your import, production, and release-for-consumption data.

Do Free Zone businesses importing excisable goods for re-export pay excise tax?

Excisable goods held in designated tax warehouses (DTW) or designated zones may be held under suspension of excise tax — meaning the tax is not payable while the goods remain in the designated zone and are not released for consumption in the UAE. Excise tax becomes payable when goods leave the designated zone for consumption in the UAE. The DTW and designated zone arrangements require specific FTA authorisation, which Affinitas can advise on.

Need to Register for UAE Excise Tax?

Affinitas manages the full excise tax registration process — from product classification through FTA EmaraTax submission, digital stamp compliance, and ongoing monthly return filing. No obligation.

Disclaimer: The information on this page is provided for general guidance only and does not constitute legal or tax advice. UAE excise tax rates, product classifications, and compliance requirements are governed by Federal Decree-Law No. 7 of 2017, Federal Decree-Law No. 19 of 2022, and FTA guidance — all subject to change. Affinitas recommends obtaining professional advice specific to your products and business circumstances. Affinitas is a tax advisory firm and does not provide legal representation.