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If your business imports, produces, stockpiles, or releases excise goods in the UAE, you’re within the excise regime and must register with the FTA and file monthly returns (normally due by the 15th of the following month). This guide explains current rates, registration, returns, Digital Tax Stamps (DTS) for tobacco, Designated Zones (DZ) controls, penalties, and where AEYAccounting fits in with turnkey compliance (VAT and corporate tax included).
Excise applies to goods typically harmful to health or the environment:
Tobacco & tobacco products
Electronic smoking devices and their liquids
Energy drinks
Carbonated drinks (excludes sparkling water)
Sweetened drinks (added sugar/sweeteners)
Excise good | Rate |
Tobacco & tobacco products | 100% |
Electronic smoking devices | 100% |
Liquids used in e-smoking devices | 100% |
Energy drinks | 100% |
Carbonated drinks | 50% |
Sweetened drinks | 50% |
Sources: FTA and UAE Government Portal.
You must register for Excise Tax if you conduct any of the following in the UAE:
Import excise goods
Produce excise goods for local consumption
Stockpile excise goods (in specified cases)
Release excise goods from a Designated Zone
How to register (EmaraTax):
Create/activate an EmaraTax account create Taxable Person profile choose Excise Tax Registration complete the application with product/activity details.
Under Cabinet Decision 52/2019, excise uses the higher of:
the FTA’s standard price (if published), or
your Designated Retail Sales Price (DRSP) net of excise.
Practical shortcuts from the Decision when backing out tax from DRSP:
50% items → Tax = 1/3 of DRSP
100% items → Tax = 1/2 of DRSP
Worked examples
SKU | Shelf/DRSP (incl. excise) | Rate | Excise tax | Net price (excl. excise) |
Carbonated drink 330ml | AED 6.00 | 50% | AED 2.00 (⅓ of 6.00) | AED 4.00 |
E-liquid 60ml | AED 40.00 | 100% | AED 20.00 (½ of 40.00) | AED 20.00 |
Tax period: usually monthly
Return & payment due: by the 15th of the month after period end (rolls to next working day if weekend/holiday)
Channel: EmaraTax (returns are pre populated from import/production/DZ declarations; you must review, complete, and submit)
Tip from our VAT filing practice (relevant keyword alignment): if you already use our VAT registration and VAT filing services, align your excise SKU mapping and customs codes with your VAT item master to keep both taxes consistent during audits
Cigarettes, water pipe tobacco, and electrically heated tobacco must follow the DTS scheme. Packs are marked with secure stamps and tracked from import/production through distribution; unstamped products are not permitted for import or sale. Onboarding involves a DTS request, account setup, and ongoing ordering/consumption reconciliation.
Trade licence and legal form
Authorised signatory IDs (Passport/EID)
Bank IBAN
Customs code and premises/warehouse details
Product catalogue (brand/pack/volume/HS codes); DRSP/standard price references
DZ/Warehouse Keeper evidence (if relevant)
(Exact prompts are shown inside EmaraTax during Excise registration and Excise Goods registration.)
Risk | What we see | Preventive action |
Displaying prices excluding excise | Misaligned POS labels, online price lists without excise | Maintain a DRSP register and price-list controls mapped to SKUs |
Missing/late monthly return | Inventory movements posted after cut-off | Close excise movement logs by D+3, reconcile to customs/DZ docs, assign deputy approver |
DZ movement errors | Incomplete release/transfer forms | Use a DZ movement checklist; appoint a Warehouse Keeper with SOPs |
DTS lapses | Stamps not ordered or applied correctly | Forecast stamp needs; reconcile stamp orders vs. production runs monthly |
(Penalty specifics are prescribed under UAE tax procedures and excise decisions—late filings and record failures escalate quickly, so prevention beats cure.)
Package | Scope | Fee (AED) |
Excise Registration (FTA/EmaraTax) | Activity scoping, product mapping, application & TRN | 1,500 |
Monthly Excise Return Filing | Import/production/DZ reconciliation, return prep, payment support | 750 / month |
DTS Onboarding (Tobacco) | DTS account request, product setup, stamp ordering controls | 3,000 |
Designated Zone/Warehouse Keeper Setup | Eligibility, application pack, SOPs, movement templates | 4,500 |
Excise Health Check | One-off audit, penalty risk matrix, board-ready report | 2,500 |
Bundle with VAT & Corporate Tax (popular on your site):
VAT registration & filing add on
Corporate tax registration/consultancy (mainland, free zone incl. DMCC/DAFZA/JAFZA/IFZA)
Cross-border VAT advisory for import/export flows
Bookkeeping & accounting services in Dubai for clean monthly closes
Ask for a free consultation to tailor a plan.
Confirm your role (importer, producer, stockpiler, DZ release).
Register on EmaraTax for Excise; register excise goods where applicable.
Map SKUs (DRSP, standard price references, HS codes) and align VAT item master.
Set up processes for customs/DZ declarations and monthly reconciliations.
File & pay by the 15th each month; maintain records for audit.
For tobacco, implement DTS ordering, application, and reconciliations.
Streamline your annual accounting form submissions.
Whatever your question is, our team will lead you to the right direction.
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Yes. Excise registration is activity-based, not turnover-based. If you import/produce/stockpile/release excise goods, you must register.
Generally by the 15th of the month following the tax period, via EmaraTax.
Yes. Cigarettes, water-pipe tobacco and heated tobacco must carry DTS to be imported/sold in the UAE.
Yes—excise applies on excise goods irrespective of VAT regimes. We combine free zone VAT compliance with your excise flow design so both taxes reconcile. (Ask about our DMCC/DAFZA/JAFZA VAT packages.)
Absolutely. Many clients bundle excise, VAT registration & filing, and corporate tax registration/consultancy with bookkeeping so every return pulls from the same clean ledger.
