Excise Tax

At Entrust Auditors, we help businesses manage Excise Tax efficientlyensuring accurate registration, correct duty calculation, and full audit readiness.

Excise Tax is an indirect tax introduced in the UAE to discourage the consumption of products harmful to human health or the environment. Businesses involved in the import, production, storage, or release of excisable goods must comply with strict Federal Tax Authority (FTA) requirements.

What is Excise Tax?

Excise Tax is an indirect tax levied on specific goods that are considered harmful to human health or the environment. In the UAE, common categories include tobacco and related products, electronic smoking devices and liquids, energy drinks (100%), and carbonated/sweetened beverages (often 50%).

Excise Tax Compliance Requirements

Businesses subject to Excise Tax must comply with ongoing obligations, including:

Excise Tax Registration

Registration with the FTA Excise portal ,Product classification and declaration and Warehouse registration (if applicable)

Excise Tax Return Filing

Monthly/periodic return filing including opening/closing stocks, production, imports, and releases

Valuation & RSP Rules

Excise duty is often calculated based on the Retail Selling Price (RSP) or prescribed valuation methods.

Stock & Warehouse Compliance

Stock, movement, and customs documentation retention for inspections.

Entrust’s Excise Tax Services

  • Excise Tax eligibility assessment
  • FTA registration and amendments
  • Monthly Excise Tax return filing
  • Duty computation and reconciliation
  • Warehouse compliance support
  • Stock movement and audit trail review
  • FTA audit support and representation
Why Excise Tax Compliance Matters

Non-compliance with Excise Tax regulations can result in:

  • Heavy penalties
  • Business disruption
  • Customs delays
  • FTA audits and assessments