Excise Tax is a specialized, high-rate tax levied in the UAE on goods deemed harmful to public health or the environment. Any business involved in the import, production, or stockpiling of these goods must register with the Federal Tax Authority (FTA). With rates as high as 100%, and a fixed penalty of AED 20,000 for late registration, compliance is immediately critical to supply chain and profitability.
FrankDigit Accounting Services provides end-to-end Excise Tax support. We define your specific tax liability, handle mandatory Product Registration, and ensure monthly/quarterly returns are filed accurately on the EmaraTax portal. Our expert service, built on Confidentiality, Transparency, and Integrity (CTI), protects your inventory from customs delays and avoids devastating fines for miscalculation or non-declaration.
Excise Tax is an indirect tax applied once on specific “excise goods” at the point of first release for consumption in the UAE (e.g., at import or manufacture). Unlike VAT, there is no minimum turnover threshold for registration; if you deal in excisable goods, registration is compulsory.
| Excise Good Category | Excise Tax Rate |
|---|---|
|
Tobacco Products (Cigarettes, Vaping Liquids/Devices) |
100% |
|
Energy Drinks |
100% |
|
Carbonated Drinks (Excluding unflavored sparkling water) |
50% |
|
Sweetened Drinks (Any beverage with added sugar/sweeteners) |
50% |
Registration must occur within 30 days of becoming liable, which applies to importers, producers, and certain stockpile managers.
We ensure every step of your excise process is compliant, protecting your margins and your supply chain integrity.
| Deliverable | How FrankDigit Delivers |
|---|---|
|
Excise Registration (Importer/Producer) |
Full registration submission on EmaraTax, securing your Excise Tax TRN and preventing the AED 20,000 penalty. |
|
Product Registration & Pricing |
Mandatory registration of each excisable product with the FTA and verification of the correct Retail Selling Price (RSP) for tax base calculation. |
|
Monthly/Quarterly Return Filing |
Accurate preparation and submission of the periodic Excise Tax Return (within 15 days of the tax period end). |
|
Designated Zone Compliance |
Specialized advisory and reporting for the transfer and release of excise goods from Designated Zones (Excise Warehouses). |
|
Stock Reconciliation |
Managing inventory movements and reporting for stockpiled goods to ensure full tax payment on release for consumption. |
The complexity of Excise Tax lies in calculating the correct tax base and avoiding high-risk non-compliance actions.
Excise Tax is calculated based on the highest of the FTA’s standard price list or the product’s Retail Selling Price (RSP) (excluding VAT and the Excise Tax itself). Miscalculation of the tax base—especially for tobacco and sweetened drinks—is a common error that leads to major liabilities and severe fines for under-reporting. Our expertise ensures you apply the correct Ad Valorem or Specific calculation methods to every product line.
Failure to register on time or late return filing triggers fixed penalties. However, failure to facilitate an FTA auditor can result in an AED 20,000 fine, and serious violations like tax evasion (e.g., using false markings or documentation) can result in penalties up to 300% of the tax evaded. We ensure meticulous record-keeping of customs forms, price lists, and stock reconciliation statements to provide robust defense against audit scrutiny.
We deliver a fast, efficient path to compliance that secures your supply chain and minimizes financial risk.
- Decode (Product & Liability Assessment): We identify all excisable goods you deal with, determine your liability (importer/producer/stockpiler), and calculate the applicable tax rate and tax base (RSP).
- Simplify (Registration & Setup): We manage the mandatory Excise Tax Registration and Product Registration processes on the EmaraTax portal and set up your accounting system to track excisable inventory correctly.
- Automate (Reporting & Payment): We prepare and file your periodic Excise Tax Return by the 15th-day deadline, manage tax payment, and handle all documentation required for Designated Zone movements and stock reconciliation.
Dealing with excisable goods? Don’t risk penalties or customs delays. Secure expert Excise Tax compliance today.
📞 Contact FrankDigit Accounting Services for specialized Excise Tax Registration and Reporting.