Freezone Excise Tax Preparation & Filing in UAE

Why Freezone Businesses Need Expert Excise Tax Support

Freezone entities often underestimate the complexity of excise tax law UAE. From understanding which goods are taxable—like energy drinks, tobacco, and carbonated drinks—to accurate computations and timely filings, missteps can lead to hefty excise tax penalty UAE.

  • Regulatory Complexity: UAE sets excise taxes ranging from 50% to 100%. Applying them correctly in freezones is non-negotiable.
  • Cross-Jurisdiction Nuances: Certain freezones allow import/export exemptions, while others don’t. Differing rules in Dubai, Sharjah, and Abu Dhabi demand localized expertise.
  • Severe Penalties: Submissions delays or miscalculations attract steep fines and legal action under excise tax law UAE.

Our Freezone Excise Tax Services

AEY Accounting LLC offers end-to-end compliance services designed for clarity, confidence, and cost-efficiency in freezone environments.

Excise Tax Registration & De-registration
  • Fast-track excise tax registration UAE tailored to your specific freezone.
  • Manual license cancelation post-business closure or product category exit.
Calculation & Advisory
  • Accurate breakdown: how to calculate excise tax in UAE — unit rates × landed cost.
  • Real-time cost modelling for COGS and pricing strategy.
Preparation & Filing
  • Preparation of excise returns aligned with Ministry of Finance templates.
  • Submission on time with validated seals—pertinent to excise tax law UAE.
Audit & Reconciliation
  • Cross-checking import declarations, invoice reviews, and stock analysis.
  • Risk mitigation before tax authority audits.
Penalty Resolution
  • Full support to file penalty appeals and negotiate waivers.
  • Representation during inspections and correspondence with FATCA and MOF.

How We Calculate Excise Tax

Product Type Tax Rate Unit Cost (AED) Retail Price (AED) Excise Tax (½ or ⅓ of Retail)
Energy Drinks 100% 5.00 10.00 10.00 AED (½ × 20.00 if retail 20)
Tobacco Products 100% 2.50 5.00 2.50 AED
Carbonated Soft Drinks 50% 3.00 6.00 2.00 AED (⅓ × 6.00)
Our approach explains how to calculate excise tax in UAE clearly—essential for accurate compliance.

How Our Process Works

Discovery & Assessment

We audit your product mix and freezone jurisdiction.

Registration

Submit required documents; manage excise tax registration UAE service.

Setup & Training

Implement in-house systems or AEY tools; train your finance team.

Reporting & Advisory

Ongoing support for calculations, filings, and compliance with excise tax law UAE.

Audit & Reviews

Proactive assessments to avoid future excise tax penalty UAE.

Why Choose AEY Accounting LLC?

  • Freezone Expertise: Deep understanding of DIFC, JAFZA, RAK, and other zones.

    🇦🇪 UAE-Savvy Team: On-ground specialists across Dubai, Abu Dhabi, and Sharjah.

    Full Compliance: Zero unresolved penalties for our clients in 2024.

    📊 Transparent Pricing: Flat advisory fees and package-based filing support.

Pricing Overview

Service Package Freezone Rate (AED)
Registration Only 2,500
Monthly Filing Only 1,800 per return
Full Compliance + Audit Prep 5,000 setup + 1,200/month
Note: For entities with multiple product categories, fees adjusted based on scope and complexity.

Freezone Locations We Serve

  • Dubai Freezones: DIFC, DWC, DMCC, JAFZA – excise-friendly support.
  • Abu Dhabi: ADGM, Khalifa Freezone – integrated excise compliance.
  • Sharjah Freezones: SIR, SAIF – cost savings via inter-zone expertise.

Benefits of Localized Advisory

  • City-Specific Customs Rules: Different customs points may apply in Sharjah vs Dubai.
  • Proximity Advantage: Onsite visits, documentation pickups in Dubai and Abu Dhabi.
  • Jurisdictional Know‑how: City-based variation in penalties and exemptions.
Feel Free

Get A Free Quotes

Streamline your annual accounting form submissions.

Do You Need Help?

Whatever your question is, our team will lead you to the right direction.

Mail Address

info@aey.ae

Get Started with us today

Your business is special. Let us calculate your dreams

Popular Questions

Your Trusted Partner for Business Support & Solutions.

Excise returns are due within 15 days after the end of each tax period (monthly or quarterly). Late submissions incur penalties according to excise tax law UAE.

Some transactions — such as exports — may be zero-rated depending on the freezone and goods. We analyze excise tax registration UAE criteria to identify eligibilities.

Penalties start from AED 500 or 5% of the unpaid duty, and may escalate to 25% with customs seizures. Proactive compliance minimizes risks.

Yes, if you import, stock, or re-export excisable items, registration is mandatory under excise tax law UAE.

Typically: freezone license copy, MOF portal access, import/export invoices, and details on excisable products.

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