Excise Tax in Dubai
Tobacco Products
The excise tax rate on tobacco products is a hefty 100%, meaning that the tax amount is equal to the product's retail price. These high excise tax rates in UAE aim to deter smoking and tobacco consumption.
Energy Drinks
Similar to tobacco, the excise tax rate on energy drinks is also set at 100%, effectively making the tax amount equivalent to the retail cost of the product. This discourages excessive consumption of these high-caffeine beverages.
Carbonated Drinks
Carbonated drinks, often associated with high sugar content, face a 50% excise tax rate. In this case, the tax amount is equal to 50% of the product's retail price. The aim is to curb the consumption of sugary drinks and promote healthier choices.
Registration for Excise Tax
Businesses involved in the import, production, or storage of excise goods must register with the FTA for excise tax purposes. The registration process involves the following steps:
1.Create an Account: Set up an account on the FTA's e-Services portal.
2.Submit the Registration Form: Complete and submit the excise tax registration form available on the portal.
3.Receive Tax Registration Number (TRN): Upon approval, businesses receive a TRN, confirming their registration for excise tax.
Conclusion
Excise tax is an important component of Dubai's tax system, aimed at promoting public health and generating revenue. Businesses involved in excise goods must ensure compliance with registration, return filing, and payment obligations. Staying informed about FTA guidelines and seeking professional advice can help businesses navigate the complexities of excise tax in Dubai effectively.
