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Excise Tax implementation in UAE from October 2017
Excise Tax will apply to the following goods:
o Tobacco products - Tobacco and tobacco products include all items listed within Schedule 24 of the GCC Common Customs Tariff.
o Carbonated drinks (note that this excludes sparkling water) - Carbonated drinks include any aerated beverage except for unflavoured aerated water. Also considered to be carbonated drinks are any concentrations, powder, gel, or extracts intended to be made into an aerated beverage.
o Energy drinks - Energy drinks include any beverages which are marketed, or sold as an energy drink, and containing stimulant substances that provide mental and physical stimulation, which includes without limitation: caffeine, taurine, ginseng and guarana. This also includes any substance that has an identical or similar effect as the aforementioned substances. Also considered to be energy drinks are any concentrations, powder, gel or extracts intended to be made into an energy enhancing drink.
Excise tax will be calculated as a percentage of the Retail Sale Prices (RSP) throughout UAE as given below:
o 100% for tobacco products & Energy drinks
o 50% for Carbonated drinks
All businesses that import, produce or store excisable goods must consider if they must be registered with the Federal Tax Authority and are accountable for filing and paying Excise Tax. All such businesses required to register with FTA (Federal Tax Authority) and obtain a TRN (Tax Registration Number).