{"id":7972,"date":"2023-01-11T07:59:02","date_gmt":"2023-01-11T07:59:02","guid":{"rendered":"https:\/\/www.squareyards.ae\/blog\/?p=7972"},"modified":"2024-09-11T06:21:06","modified_gmt":"2024-09-11T06:21:06","slug":"excise-tax-in-uae-ltart","status":"publish","type":"post","link":"https:\/\/www.squareyards.ae\/blog\/excise-tax-in-uae-ltart","title":{"rendered":"Excise Tax in the UAE : A Detailed Guide"},"content":{"rendered":"<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The United Arab Emirates (UAE) has recently implemented a new excise tax law. If you are a business owner or a resident of the UAE, you must know how this tax affects you. In this blog post, we will explain all you need to know about the excise tax in UAE, including the different types of taxes, those who are subject to the tax, and the filing requirements. We&#8217;ll also discuss the law&#8217;s potential benefits and how to comply with the regulations.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">This blog covers everything that you must know about the excise tax in UAE!<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_40 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" area-label=\"ez-toc-toggle-icon-1\"><label for=\"item-6a1f3807e8e79\" aria-label=\"Table of Content\"><span style=\"display: flex;align-items: center;width: 35px;height: 30px;justify-content: center;direction:ltr;\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/label><input  type=\"checkbox\" id=\"item-6a1f3807e8e79\"><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.squareyards.ae\/blog\/excise-tax-in-uae-ltart\/#About_Excise_Tax_in_UAE\" title=\"About Excise Tax in UAE?\">About Excise Tax in UAE?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.squareyards.ae\/blog\/excise-tax-in-uae-ltart\/#Rate_of_Excise_Tax_in_UAE\" title=\"Rate of Excise Tax in UAE\">Rate of Excise Tax in UAE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.squareyards.ae\/blog\/excise-tax-in-uae-ltart\/#Purpose_of_Levying_Excise_Tax_in_UAE\" title=\"Purpose of Levying Excise Tax in UAE\">Purpose of Levying Excise Tax in UAE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.squareyards.ae\/blog\/excise-tax-in-uae-ltart\/#The_Goods_Levied_Under_The_UAE_Excise_Tax_Law\" title=\"The Goods Levied Under The UAE Excise Tax Law\">The Goods Levied Under The UAE Excise Tax Law<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.squareyards.ae\/blog\/excise-tax-in-uae-ltart\/#Products_Exempt_From_the_Excise_Tax_in_the_UAE\" title=\"Products Exempt From the Excise Tax in the UAE\">Products Exempt From the Excise Tax in the UAE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.squareyards.ae\/blog\/excise-tax-in-uae-ltart\/#Excise_Tax_Levied_For_Businesses\" title=\"Excise Tax Levied For Businesses\">Excise Tax Levied For Businesses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.squareyards.ae\/blog\/excise-tax-in-uae-ltart\/#How_Can_You_Register_For_Excise_Tax\" title=\"How Can You Register For Excise Tax?\">How Can You Register For Excise Tax?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.squareyards.ae\/blog\/excise-tax-in-uae-ltart\/#Frequently_Asked_Question_FAQs\" title=\"Frequently Asked Question (FAQs)\">Frequently Asked Question (FAQs)<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.squareyards.ae\/blog\/excise-tax-in-uae-ltart\/#Who_should_register_for_excise_tax_in_the_UAE\" title=\"Who should register for excise tax in the UAE\">Who should register for excise tax in the UAE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.squareyards.ae\/blog\/excise-tax-in-uae-ltart\/#What_is_the_importance_of_excise_tax\" title=\"What is the importance of excise tax?\">What is the importance of excise tax?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.squareyards.ae\/blog\/excise-tax-in-uae-ltart\/#When_did_UAE_implement_excise_tax\" title=\"When did UAE implement excise tax?\">When did UAE implement excise tax?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.squareyards.ae\/blog\/excise-tax-in-uae-ltart\/#Who_will_pay_excise_taxes\" title=\"Who will pay excise taxes?\">Who will pay excise taxes?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.squareyards.ae\/blog\/excise-tax-in-uae-ltart\/#What_is_excise_tax_in_simple_words\" title=\"What is excise tax in simple words? \">What is excise tax in simple words? <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.squareyards.ae\/blog\/excise-tax-in-uae-ltart\/#How_does_excise_tax_work\" title=\"How does excise tax work? \">How does excise tax work? <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.squareyards.ae\/blog\/excise-tax-in-uae-ltart\/#What_does_excise_tax_depend_on\" title=\"What does excise tax depend on? \">What does excise tax depend on? <\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 style=\"text-align: left;\"><span class=\"ez-toc-section\" id=\"About_Excise_Tax_in_UAE\"><\/span><span style=\"font-weight: 400;\">About Excise Tax in UAE?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-7982\" src=\"https:\/\/www.squareyards.ae\/blog\/wp-content\/uploads\/2023\/01\/About-Excise-Tax-in-UAE.jpg\" alt=\"About Excise Tax in UAE\" width=\"1000\" height=\"666\" srcset=\"https:\/\/www.squareyards.ae\/blog\/wp-content\/uploads\/2023\/01\/About-Excise-Tax-in-UAE.jpg 1000w, https:\/\/www.squareyards.ae\/blog\/wp-content\/uploads\/2023\/01\/About-Excise-Tax-in-UAE-300x200.jpg 300w, https:\/\/www.squareyards.ae\/blog\/wp-content\/uploads\/2023\/01\/About-Excise-Tax-in-UAE-768x511.jpg 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The United Arab Emirates (UAE) recently introduced an excise tax, an indirect taxation imposed on certain goods deemed harmful to society. The excise tax came into effect on 1 October 2017 and applies to energy drinks, tobacco products, and certain electronic smoking devices and liquids. The purpose of the excise tax is to reduce consumption of these products, ultimately helping to create a healthier society and lower health-related costs associated with their use. Additionally, it is expected to generate additional revenues for the UAE government.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">All businesses that sell the specified items within the UAE must pay the applicable excise tax rate, which is then passed on to the consumer at higher prices. As such, consumers should expect to pay more for these products once the tax comes into effect.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">It is also important to note that businesses are obligated to file taxes related to their excise tax payments with the Federal Tax Authority, also known as (FTA). All companies must obtain an Excise Tax Registration Certificate to do so. Furthermore, any business that fails to comply with the new law may face severe penalties.\u00a0<\/span><\/p>\n<h2 style=\"text-align: left;\"><span class=\"ez-toc-section\" id=\"Rate_of_Excise_Tax_in_UAE\"><\/span><span style=\"font-weight: 400;\">Rate of Excise Tax in UAE<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The rate of excise tax varies depending on the product, with the rate for tobacco products being 100%, carbonated drinks being 50%, and electronic smoking devices and liquids being 100%.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">According to the Cabinet Decision No. 52 of 2019 on Excise Goods, Excise Tax Rates, and Methods of Calculating Excise Price, the following rates apply:<\/span><\/p>\n<table style=\"width: 94.611%;\">\n<tbody>\n<tr>\n<td style=\"width: 53.7066%; text-align: center;\"><strong>Item Name<\/strong><\/td>\n<td style=\"width: 108.088%; text-align: center;\"><strong>Excise Tax Percentage<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 53.7066%; text-align: center;\"><span style=\"font-weight: 400;\">Carbonated Drinks<\/span><\/td>\n<td style=\"width: 108.088%; text-align: center;\"><span style=\"font-weight: 400;\">50%<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 53.7066%; text-align: center;\"><span style=\"font-weight: 400;\">Tobacco Products<\/span><\/td>\n<td style=\"width: 108.088%; text-align: center;\"><span style=\"font-weight: 400;\">100%<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 53.7066%; text-align: center;\"><span style=\"font-weight: 400;\">Energy Drinks<\/span><\/td>\n<td style=\"width: 108.088%; text-align: center;\"><span style=\"font-weight: 400;\">100%<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 53.7066%; text-align: center;\"><span style=\"font-weight: 400;\">Electronic Smoking Devices<\/span><\/td>\n<td style=\"width: 108.088%; text-align: center;\"><span style=\"font-weight: 400;\">100%<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 53.7066%; text-align: center;\"><span style=\"font-weight: 400;\">Liquids used in E-cigs and other devices<\/span><\/td>\n<td style=\"width: 108.088%; text-align: center;\"><span style=\"font-weight: 400;\">100%<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 53.7066%; text-align: center;\"><span style=\"font-weight: 400;\">Any product with added sugar or sweetener<\/span><\/td>\n<td style=\"width: 108.088%; text-align: center;\"><span style=\"font-weight: 400;\">50%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 style=\"text-align: left;\"><span class=\"ez-toc-section\" id=\"Purpose_of_Levying_Excise_Tax_in_UAE\"><\/span><span style=\"font-weight: 400;\">Purpose of Levying Excise Tax in UAE<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-7983\" src=\"https:\/\/www.squareyards.ae\/blog\/wp-content\/uploads\/2023\/01\/Purpose-of-Levying-Excise-Tax-in-UAE.jpg\" alt=\"Purpose of Levying Excise Tax in UAE\" width=\"1000\" height=\"448\" srcset=\"https:\/\/www.squareyards.ae\/blog\/wp-content\/uploads\/2023\/01\/Purpose-of-Levying-Excise-Tax-in-UAE.jpg 1000w, https:\/\/www.squareyards.ae\/blog\/wp-content\/uploads\/2023\/01\/Purpose-of-Levying-Excise-Tax-in-UAE-300x134.jpg 300w, https:\/\/www.squareyards.ae\/blog\/wp-content\/uploads\/2023\/01\/Purpose-of-Levying-Excise-Tax-in-UAE-768x344.jpg 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The United Arab Emirates has implemented the Excise Tax to ensure that the government can collect revenue from certain products, such as tobacco and energy drinks. The purpose of levying the tax is to reduce the consumption of unhealthy items and support economic growth and public finances.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The excise tax applies to certain goods in the UAE, including tobacco products, carbonated drinks, and energy drinks. It works by increasing the cost of these items so that consumers are less likely to purchase them. In some cases, the tax may even be doubled. This creates a disincentive for people to buy these items and helps to promote healthier lifestyles.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The UAE government has also imposed a 20% tax on the import of certain goods, including tobacco and carbonated drinks. This serves as an additional measure to reduce these items&#8217; consumption and help generate government revenue.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The UAE is dedicated to promoting health and wellness among its citizens. It is expected that with the implementation of the excise tax, people will be encouraged to make better lifestyle choices and move away from unhealthy items. In addition, it provides an important source of revenue for the government, allowing it to fund various public services and infrastructure.<\/span><\/p>\n<h2 style=\"text-align: left;\"><span class=\"ez-toc-section\" id=\"The_Goods_Levied_Under_The_UAE_Excise_Tax_Law\"><\/span><span style=\"font-weight: 400;\">The Goods Levied Under The UAE Excise Tax Law<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Any product considered dangerous to your environment or health will be subject to excise tax in the UAE. Excise goods in UAE include the following:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sweetened or sugary beverages\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Any concentration, gel, powder, or extract that can be used to make an energy drink<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Any carbonated beverages, gels, powders, or substances used to make an aerated beverage.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cigarettes<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Smoking devices made from electronic components, such as e-cigarettes<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Nicotine and tobacco-free e-liquids added to electronic smoking devices<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: left;\"><span class=\"ez-toc-section\" id=\"Products_Exempt_From_the_Excise_Tax_in_the_UAE\"><\/span><span style=\"font-weight: 400;\">Products Exempt From the Excise Tax in the UAE<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-7984\" src=\"https:\/\/www.squareyards.ae\/blog\/wp-content\/uploads\/2023\/01\/Products-Exempt-From-the-Excise-Tax-in-the-UAE.jpg\" alt=\"Products Exempt From the Excise Tax in the UAE\" width=\"1000\" height=\"637\" srcset=\"https:\/\/www.squareyards.ae\/blog\/wp-content\/uploads\/2023\/01\/Products-Exempt-From-the-Excise-Tax-in-the-UAE.jpg 1000w, https:\/\/www.squareyards.ae\/blog\/wp-content\/uploads\/2023\/01\/Products-Exempt-From-the-Excise-Tax-in-the-UAE-300x191.jpg 300w, https:\/\/www.squareyards.ae\/blog\/wp-content\/uploads\/2023\/01\/Products-Exempt-From-the-Excise-Tax-in-the-UAE-768x489.jpg 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The Excise Tax is only applied to certain items such as tobacco, cigarettes, carbonated drinks, etc. However, there is a list of things that are excise tax-free. The following beverages will not be subject to the new tax:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Bottles of milk, milk substitutes or any other ready-to-drink milk beverage containing at least 75% of milk.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Formula, baby food or both.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The guidelines listed in Standard 654 of the GCC &#8211; General Requirements for Pre-packaged Foods for Special Dietary Use as outlined in Section General Requirements for Pre-packaged Foods for Special Dietary Use of the GCC<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Beverages consumed for medical purposes, according to GCC Standard 1366\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Standardisation Organisation under the heading &#8216;General Requirements for Handling of Foods for Special Medical Purposes&#8217;.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: left;\"><span class=\"ez-toc-section\" id=\"Excise_Tax_Levied_For_Businesses\"><\/span><span style=\"font-weight: 400;\">Excise Tax Levied For Businesses<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The enactment of the new UAE excise tax will impact businesses. The excise items must be registered in the new system as part of the FTA implementation process. You&#8217;ll need to update the registration information for businesses already registered for UAE&#8217;s excise tax.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">As part of the newly enrolled system of UAE for registering excise tax, the FTA will roll out two phases: 1st phase will register sweetened drinks, while the 2nd phase will register e-cigs, smoking devices and liquids.<\/span><\/p>\n<h2 style=\"text-align: left;\"><span class=\"ez-toc-section\" id=\"How_Can_You_Register_For_Excise_Tax\"><\/span><span style=\"font-weight: 400;\">How Can You Register For Excise Tax?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-7985\" src=\"https:\/\/www.squareyards.ae\/blog\/wp-content\/uploads\/2023\/01\/How-Can-You-Register-for-Excise-Tax.jpg\" alt=\"How Can You Register for Excise Tax\" width=\"1000\" height=\"667\" srcset=\"https:\/\/www.squareyards.ae\/blog\/wp-content\/uploads\/2023\/01\/How-Can-You-Register-for-Excise-Tax.jpg 1000w, https:\/\/www.squareyards.ae\/blog\/wp-content\/uploads\/2023\/01\/How-Can-You-Register-for-Excise-Tax-300x200.jpg 300w, https:\/\/www.squareyards.ae\/blog\/wp-content\/uploads\/2023\/01\/How-Can-You-Register-for-Excise-Tax-768x512.jpg 768w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">If businesses want to register for UAE excise taxes, they need to sign up for an account with the online services on the website of the FTA. Please get in touch with the<\/span><span style=\"font-weight: 400;\"> Federal Tax Authority (FTA) through the enquiry form, email info@tax.gov.ae, or call 600 599 994 or 04-7775777 <\/span><span style=\"font-weight: 400;\">if you have general inquiries about tax registration and application.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Since the excise tax has no registration limit, any corporation intending to participate in any of the above activities must register before 1 October 2017 and account for it.<\/span><\/p>\n<p style=\"text-align: left;\"><strong>Conclusion<\/strong><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The introduction of an excise tax in the UAE is an important step towards creating a healthier society and generating additional revenue for the government. While consumers will have to pay more for certain products due to this tax, it is important to recognise that its purpose is to promote a healthier lifestyle and discourage the consumption of certain products deemed to be harmful.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The excise tax in the UAE is a good step forward, but people might have several queries before it is implemented successfully. Businesses and individuals should take the time to research all of their options before committing to anything, as the implications of this new tax could significantly impact their finances.<\/span><\/p>\n<p><strong>More Useful Articles For You :<\/strong><\/p>\n<table style=\"width: 98.5437%; height: 310px;\">\n<tbody>\n<tr>\n<td width=\"301\"><strong>All About Tax System in UAE<\/strong><\/td>\n<td width=\"301\"><strong><a href=\"https:\/\/www.squareyards.ae\/blog\/tax-system-in-uae-ltart\">Tax System in UAE<\/a><\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"301\"><strong>Guide To Excise Tax Return in UAE<\/strong><\/td>\n<td width=\"301\"><strong><a href=\"https:\/\/www.squareyards.ae\/blog\/excise-tax-return-in-the-uae-accart\">Excise Tax Return in UAE<\/a><\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"301\"><strong>Understand The UAE Banking System<\/strong><\/td>\n<td width=\"301\"><strong><a href=\"https:\/\/www.squareyards.ae\/blog\/uae-banking-system-accart\">UAE Banking System<\/a><\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"301\"><strong>About New Bounced Cheque Law in UAE<\/strong><\/td>\n<td width=\"301\"><strong><a href=\"https:\/\/www.squareyards.ae\/blog\/new-bounced-cheque-law-in-uae-accart\">New Bounced Cheque Law in UAE<\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Question_FAQs\"><\/span>Frequently Asked Question (FAQs)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">\t\t<section class=\"sc_fs_faq sc_card \">\n\t\t\t<div>\n\t\t\t\t<h3><span class=\"ez-toc-section\" id=\"Who_should_register_for_excise_tax_in_the_UAE\"><\/span>Who should register for excise tax in the UAE<span class=\"ez-toc-section-end\"><\/span><\/h3>\t\t\t\t<div>\n\t\t\t\t\t\t\t\t\t\t<p>\n\t\t\t\t\t\tBusinesses in the UAE are responsible for registering if they release excise goods, import them, produce them, or store them.\t\t\t\t\t<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"sc_fs_faq sc_card \">\n\t\t\t<div>\n\t\t\t\t<h3><span class=\"ez-toc-section\" id=\"What_is_the_importance_of_excise_tax\"><\/span>What is the importance of excise tax?<span class=\"ez-toc-section-end\"><\/span><\/h3>\t\t\t\t<div>\n\t\t\t\t\t\t\t\t\t\t<p>\n\t\t\t\t\t\tExcise taxes help government agencies offset public services and infrastructure costs. They also provide extra income from which other investments can be made. \t\t\t\t\t<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"sc_fs_faq sc_card \">\n\t\t\t<div>\n\t\t\t\t<h3><span class=\"ez-toc-section\" id=\"When_did_UAE_implement_excise_tax\"><\/span>When did UAE implement excise tax?<span class=\"ez-toc-section-end\"><\/span><\/h3>\t\t\t\t<div>\n\t\t\t\t\t\t\t\t\t\t<p>\n\t\t\t\t\t\tIt was implemented on 1 October 2017. \t\t\t\t\t<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"sc_fs_faq sc_card \">\n\t\t\t<div>\n\t\t\t\t<h3><span class=\"ez-toc-section\" id=\"Who_will_pay_excise_taxes\"><\/span>Who will pay excise taxes?<span class=\"ez-toc-section-end\"><\/span><\/h3>\t\t\t\t<div>\n\t\t\t\t\t\t\t\t\t\t<p>\n\t\t\t\t\t\tThe producer pays the excise tax when he sells his goods to retailers or distributors in the UAE. The retailer then adds excise tax to the price at which he sells the goods to consumers. \t\t\t\t\t<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"sc_fs_faq sc_card \">\n\t\t\t<div>\n\t\t\t\t<h3><span class=\"ez-toc-section\" id=\"What_is_excise_tax_in_simple_words\"><\/span>What is excise tax in simple words? <span class=\"ez-toc-section-end\"><\/span><\/h3>\t\t\t\t<div>\n\t\t\t\t\t\t\t\t\t\t<p>\n\t\t\t\t\t\tExcise tax is a form of indirect tax charged on specific products like tobacco, energy drinks, and alcohol, as well as certain types of electronics such as mobile phones and laptops. \t\t\t\t\t<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"sc_fs_faq sc_card \">\n\t\t\t<div>\n\t\t\t\t<h3><span class=\"ez-toc-section\" id=\"How_does_excise_tax_work\"><\/span>How does excise tax work? <span class=\"ez-toc-section-end\"><\/span><\/h3>\t\t\t\t<div>\n\t\t\t\t\t\t\t\t\t\t<p>\n\t\t\t\t\t\tMunicipal or state-level governments collect excise taxes based on how much revenue they want from these products. These taxes are placed on the final retail price, with all previous prices including cost-plus markup and wholesale prices. \t\t\t\t\t<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"sc_fs_faq sc_card \">\n\t\t\t<div>\n\t\t\t\t<h3><span class=\"ez-toc-section\" id=\"What_does_excise_tax_depend_on\"><\/span>What does excise tax depend on? <span class=\"ez-toc-section-end\"><\/span><\/h3>\t\t\t\t<div>\n\t\t\t\t\t\t\t\t\t\t<p>\n\t\t\t\t\t\tIn general, excise tax depends on three factors: the type of product being sold (i.e., cigarettes versus bread), the quantity produced (i.e., high volume versus low volume), and the period under consideration (i.e., one year versus five years). \t\t\t\t\t<\/p>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/section>\n\t\t\n<script type=\"application\/ld+json\">\n\t{\n\t\t\"@context\": \"https:\/\/schema.org\",\n\t\t\"@type\": \"FAQPage\",\n\t\t\"mainEntity\": [\n\t\t\t\t\t{\n\t\t\t\t\"@type\": \"Question\",\n\t\t\t\t\"name\": \"Who should register for excise tax in the UAE\",\n\t\t\t\t\"acceptedAnswer\": {\n\t\t\t\t\t\"@type\": \"Answer\",\n\t\t\t\t\t\"text\": \"Businesses in the UAE are responsible for registering if they release excise goods, import them, produce them, or store them.\"\n\t\t\t\t\t\t\t\t\t}\n\t\t\t}\n\t\t\t,\t\t\t\t{\n\t\t\t\t\"@type\": \"Question\",\n\t\t\t\t\"name\": \"What is the importance of excise tax?\",\n\t\t\t\t\"acceptedAnswer\": {\n\t\t\t\t\t\"@type\": \"Answer\",\n\t\t\t\t\t\"text\": \"Excise taxes help government agencies offset public services and infrastructure costs. They also provide extra income from which other investments can be made. \"\n\t\t\t\t\t\t\t\t\t}\n\t\t\t}\n\t\t\t,\t\t\t\t{\n\t\t\t\t\"@type\": \"Question\",\n\t\t\t\t\"name\": \"When did UAE implement excise tax?\",\n\t\t\t\t\"acceptedAnswer\": {\n\t\t\t\t\t\"@type\": \"Answer\",\n\t\t\t\t\t\"text\": \"It was implemented on 1 October 2017. \"\n\t\t\t\t\t\t\t\t\t}\n\t\t\t}\n\t\t\t,\t\t\t\t{\n\t\t\t\t\"@type\": \"Question\",\n\t\t\t\t\"name\": \"Who will pay excise taxes?\",\n\t\t\t\t\"acceptedAnswer\": {\n\t\t\t\t\t\"@type\": \"Answer\",\n\t\t\t\t\t\"text\": \"The producer pays the excise tax when he sells his goods to retailers or distributors in the UAE. The retailer then adds excise tax to the price at which he sells the goods to consumers. \"\n\t\t\t\t\t\t\t\t\t}\n\t\t\t}\n\t\t\t,\t\t\t\t{\n\t\t\t\t\"@type\": \"Question\",\n\t\t\t\t\"name\": \"What is excise tax in simple words? \",\n\t\t\t\t\"acceptedAnswer\": {\n\t\t\t\t\t\"@type\": \"Answer\",\n\t\t\t\t\t\"text\": \"Excise tax is a form of indirect tax charged on specific products like tobacco, energy drinks, and alcohol, as well as certain types of electronics such as mobile phones and laptops. \"\n\t\t\t\t\t\t\t\t\t}\n\t\t\t}\n\t\t\t,\t\t\t\t{\n\t\t\t\t\"@type\": \"Question\",\n\t\t\t\t\"name\": \"How does excise tax work? \",\n\t\t\t\t\"acceptedAnswer\": {\n\t\t\t\t\t\"@type\": \"Answer\",\n\t\t\t\t\t\"text\": \"Municipal or state-level governments collect excise taxes based on how much revenue they want from these products. These taxes are placed on the final retail price, with all previous prices including cost-plus markup and wholesale prices. \"\n\t\t\t\t\t\t\t\t\t}\n\t\t\t}\n\t\t\t,\t\t\t\t{\n\t\t\t\t\"@type\": \"Question\",\n\t\t\t\t\"name\": \"What does excise tax depend on? \",\n\t\t\t\t\"acceptedAnswer\": {\n\t\t\t\t\t\"@type\": \"Answer\",\n\t\t\t\t\t\"text\": \"In general, excise tax depends on three factors: the type of product being sold (i.e., cigarettes versus bread), the quantity produced (i.e., high volume versus low volume), and the period under consideration (i.e., one year versus five years). \"\n\t\t\t\t\t\t\t\t\t}\n\t\t\t}\n\t\t\t\t\t\t]\n\t}\n<\/script>\n\n","protected":false},"excerpt":{"rendered":"<p>The United Arab Emirates (UAE) has recently implemented a new excise tax law. If you are a business owner or a resident of the UAE, you must know how this tax affects you. In this blog post, we will explain all you need to know about the excise tax in UAE, including the different types [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":7988,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[78,83,59],"class_list":["post-7972","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fintech","category-legal-and-taxes","category-uae"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.squareyards.ae\/blog\/wp-json\/wp\/v2\/posts\/7972","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.squareyards.ae\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.squareyards.ae\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.squareyards.ae\/blog\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/www.squareyards.ae\/blog\/wp-json\/wp\/v2\/comments?post=7972"}],"version-history":[{"count":5,"href":"https:\/\/www.squareyards.ae\/blog\/wp-json\/wp\/v2\/posts\/7972\/revisions"}],"predecessor-version":[{"id":71396,"href":"https:\/\/www.squareyards.ae\/blog\/wp-json\/wp\/v2\/posts\/7972\/revisions\/71396"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.squareyards.ae\/blog\/wp-json\/wp\/v2\/media\/7988"}],"wp:attachment":[{"href":"https:\/\/www.squareyards.ae\/blog\/wp-json\/wp\/v2\/media?parent=7972"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.squareyards.ae\/blog\/wp-json\/wp\/v2\/categories?post=7972"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}