Definition

Excise Goods are products subject to excise tax in the UAE because of their negative health or environmental impact. Businesses that import, produce, or stockpile these goods must register with the FTA and pay excise tax.

Key points

• Categories include: tobacco products, carbonated drinks, energy drinks, sweetened beverages, and electronic smoking devices.
• Excise tax rates: 50% on sugary drinks, 100% on tobacco and energy drinks.
• Paid when goods are released for consumption in the UAE.
• Recorded in excise tax returns.

Practical example

An importer brings in 20,000 cans of energy drinks valued at AED 80,000. Excise tax = AED 80,000 (100%), paid to the FTA before sale.

Why it matters

Businesses dealing with excise goods must register, report, and pay correctly to avoid high penalties.