Corporate Tax Registration is mandatory for every business in the UAE — AED 10,000 penalty for late registration. Check my deadline →◆AED 10,000 Corporate Tax Penalty? Check if you qualify for a waiver →◆Corporate Tax Return Filing Deadline: 30 September 2026 for FY2025 — file now to avoid penalties◆E-Invoicing update: ASP appointment deadline extended to 30 October 2026 for businesses with AED 50M+ turnover◆Corporate Tax Registration is mandatory for every business in the UAE — AED 10,000 penalty for late registration. Check my deadline →◆AED 10,000 Corporate Tax Penalty? Check if you qualify for a waiver →◆Corporate Tax Return Filing Deadline: 30 September 2026 for FY2025 — file now to avoid penalties◆E-Invoicing update: ASP appointment deadline extended to 30 October 2026 for businesses with AED 50M+ turnover◆
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Excise Tax Services

Registration and compliance for businesses that import, produce or stockpile excise goods.

Excise Tax was introduced in the UAE in October 2017 under Federal Decree-Law No. 7 of 2017 to reduce consumption of goods considered harmful to health or the environment. Unlike VAT, it is charged once — at import, production, or release from a designated zone — calculated on the higher of the retail selling price or an FTA-published standard price. Businesses that import, produce, release, or stockpile excise goods must register with the FTA and comply with strict monthly reporting requirements; Corcess manages the full process, including the new 2026 tiered sugar-tax rules for sweetened beverages, on your behalf.

Who Needs to Register

  • Importers of excise goods into the UAE
  • Producers who release excise goods for consumption
  • Stockpilers holding excise goods for business purposes
  • Warehouse keepers operating designated zones

Goods Subject to Excise Tax

Excise Tax applies to tobacco and tobacco products (100%), electronic smoking devices and liquids (100%), energy drinks (100%), and carbonated drinks (50%), each calculated on the higher of the retail selling price or the FTA's standard price for that product.

New: Tiered Excise Tax on Sweetened Drinks (Effective 1 January 2026)

From 1 January 2026, the flat 50% rate on sweetened drinks is being replaced with a tiered, sugar-content-based model under Cabinet Decision No. 197 of 2025 — moving from a percentage of price to a fixed rate per litre, so tax scales with how much sugar a drink actually contains rather than its price.

  • Under 5g of sugar per 100ml, or artificial sweeteners only: exempt from excise tax
  • 5g to under 8g of sugar per 100ml: AED 0.79 per litre
  • 8g of sugar per 100ml or more: AED 1.09 per litre
  • Product classification is based on laboratory-verified sugar content, so manufacturers and importers need documented lab reports to support their FTA filings

Designated Zones

Goods held within an FTA-approved designated zone can have their excise tax liability suspended until released for consumption. We help assess whether your storage arrangements qualify and manage the associated stock-movement record-keeping.

Registration & Filing

  • Excise Tax registration and Tax Registration Number (TRN) application via EmaraTax
  • Monthly excise tax return preparation and filing
  • Stock reporting and reconciliation for designated zone movements
  • Reviewing product formulations and lab reports against the new sugar-tier thresholds ahead of the 1 January 2026 changeover

Why Partner With Corcess

Excise-liable businesses face some of the strictest FTA reporting requirements in the UAE tax system, and the shift to a tiered sugar-based model adds a new layer of product-level classification. We keep your registration, returns and stock records aligned with FTA expectations, reducing the risk of penalties on high-value, high-scrutiny goods.

Relevant Laws & Regulations

  • Federal Decree-Law No. 7 of 2017 on Excise Tax
    The base law establishing Excise Tax, registration obligations, and the categories of excise goods.
  • Cabinet Decision No. 52 of 2019 (as amended)
    The Executive Regulation setting out excise goods, tax calculation methodology, and designated zone rules.
  • Cabinet Decision No. 197 of 2025
    Introduces the tiered, sugar-content-based volumetric tax model for sweetened drinks, effective 1 January 2026, replacing the flat 50% rate for that category.

Summarized for general understanding, not legal advice. Laws and thresholds are updated periodically by the UAE Ministry of Finance and Federal Tax Authority — always confirm your specific position with a registered tax agent.

Talk to Corcess

Ready for compliant, stress-free tax and business support?

Book a free consultation with our FTA-approved team and get a clear plan for your UAE tax and compliance needs.

Call +971 50 271 3700