Excise Tax Consultancy UAE
Excise tax applies before you sell anything — the liability arises at import or production. If you are unsure whether your product qualifies, what rate applies, or how Designated Zones affect your obligations, you need clarity before your first shipment arrives.
When Do You Need Excise Tax Consultancy?
Consultancy is needed for new product introductions, business model changes, FTA correspondence, or when existing arrangements need to be validated.
| Business Type | Typical Question |
|---|---|
| New beverage or tobacco importer | Does my product count as excise goods? |
| Manufacturer | When exactly is excise tax triggered in production? |
| Designated Zone operator | How do zone transfers work and when is tax due? |
| Business with FTA query | What does this excise tax notice mean? |
| Product launch planning | What is my excise tax cost per unit? |
How Excise Tax Consultancy Works
Product and Activity Analysis
We review your specific products, HS codes, and business activities to determine: whether excise tax applies, at what rate, at which point in the supply chain the tax is triggered, and whether Designated Zone arrangements can defer the tax liability.
Written Opinion with Legal References
We provide a written opinion citing the relevant provisions of Federal Decree-Law No. 7 of 2017 and Cabinet Decision No. 49 of 2021. This gives you a documented position for your own records and for any FTA inquiry.
FTA Ruling Application (if needed)
Where the classification of a product is genuinely unclear, we prepare and submit a formal tax ruling request to the FTA on your behalf. A binding FTA ruling protects you from penalties if the FTA later takes a different classification position.
Transparent Pricing — No Surprises
Ad Hoc Excise Advice
AED 500 – 1,000 per hour
- ✓Product or activity analysis
- ✓Written opinion with legal references
- ✓Implementation guidance
FTA Ruling Application
AED 2,000 – 4,000
- ✓Product classification analysis
- ✓FTA ruling application preparation and submission
- ✓FTA correspondence handling
- ✓Binding ruling delivery
Excise Tax Consultancy UAE — Common Questions
How do I know if my product is subject to excise tax?
Excise tax applies to: tobacco products, electronic smoking devices and liquids, energy drinks, carbonated beverages, and sweetened beverages. Whether a specific product falls into these categories depends on its ingredients and HS code classification. If your product contains carbonation, sweeteners, or stimulants like caffeine or taurine, classification analysis is essential before import.
What is the excise tax rate on energy drinks?
Energy drinks are taxed at 100% of the designated retail selling price under Federal Decree-Law No. 7 of 2017. An energy drink retailing at AED 10 incurs AED 10 excise tax — effectively doubling the base cost before retail margin. This must be factored into pricing strategy before market entry.
Can a Designated Zone reduce my excise tax liability?
Yes. Excise tax is suspended within FTA-approved Designated Zones. Goods can be stored, processed, and transferred between registered businesses within a zone without triggering immediate payment. Tax becomes due only when goods are released for consumption in the UAE market. This can significantly improve cash flow for high-volume importers.
What records must I keep for excise tax purposes?
Excise-registered businesses must maintain: stock records showing all goods received, produced, released, and transferred; customs import declarations; production records; Designated Zone movement records; and retail price records for each product. Records must be retained for a minimum of 5 years.
Is excise tax included in the VAT base?
Yes. When calculating VAT on a sale of excise goods, VAT is calculated on the total consideration received, which includes the excise tax component. A product selling for AED 20 (including AED 10 excise tax) has a VAT base of AED 20 — meaning VAT at 5% is AED 1, on top of the excise tax already embedded in the price.
Not Sure If Your Product Is Excise-Taxable?
Send us your product description and HS code. We give you a classification opinion before you commit to importing.
Get Product Classification Advice →