Excise tax is an indirect tax levied on specific goods that are considered harmful to human health or the environment. In the UAE, excise tax currently applies to “excise goods” such as:
The tax is usually due when excise goods are imported, produced, stockpiled, or released from a designated zone into free circulation in the UAE.
Excise tax affects pricing, profitability, supply chain and reporting. Having the right setup from day one is critical.
You may have excise tax obligations if your business:
This includes manufacturers, importers, distributors, wholesalers, retailers with large stocks, free zone entities and logistics players.
UAE Mainland and Free Zone/Designated Zone Businesses
Excise tax rules apply across the UAE, including free zones. For designated zones, special rules govern when excise tax becomes due (for example, upon release for local consumption). Getting these movements right is essential to avoid unexpected liabilities and penalties.
Non-compliance with excise tax can lead to:
Given the relatively high excise tax reates (often 50% or 100% of the product price, depending on the goods), even small errors can create large exposures.
Operational and Commercial Impact
Excise tax isn’t just a formality – it impacts:
Our role is to make sure your excise tax compliance is accurate, efficient, and commercially sensible.
Our Excise Tax Services in the UAE
We provide an end-to-end excise tax solution, from initial planning to ongoing compliance.
Excise Tax Advisory & Impact Assessment
We start by understanding your business model, product portfolio and supply chain, then:
Correct product classification is the foundation of excise tax compliance. We:
(Handled in detail on our Excise Tax Registration page)
On this main excise page, our role is to make sure that:
Let Virtual Accountants handle the numbers—so you can focus on what you do best: growing your business.
(Detailed on our Excise Tax Return page)
At a high level, we support you to:
If you operate a warehouse or designated zone, we help you:
For businesses already registered, we offer:
Training & Internal Process Setup
We train your finance, tax, logistics and sales teams on:
Our team focuses on UAE tax – VAT, Corporate Tax and Excise – giving you practical, up-to-date advice aligned with FTA guidance and real-world practice.
End-to-End, Practical Support
From initial scoping and registration to filings, reviews and audit support, we stay with you at every stage so you’re never left guessing what to do next.
Industry-Focused Approach
We work with:
This helps us design solutions that actually work in your industry, not just on paper.
Flexible, Technology-Driven Service
We’re set up to work virtually across the UAE, integrating with your existing accounting and ERP systems wherever possible, and keeping your processes as automated and efficient as they can be.
We’re always on the same page with Government Agencies, working together to get the job done!
We’re always on the same page with Government Agencies, working together to get the job done!
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In some cases, even non-regular importers may not need to register, but excise tax may still be due. Each case must be reviewed based on FTA criteria and frequency of your transactions.
No. Free zone and designated zone entities can have excise tax obligations, particularly when goods are released for local consumption or moved out of the zone. The rules are specific and should be analysed carefully for each flow.
In certain situations (e.g., exports, damaged goods, errors in past returns), adjustments or refunds may be possible, provided the correct evidence and process are followed.
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