Office 938, Business Tower, Burjuman, Dubai, UAE

Excise Tax Consultancy

Excise tax was introduced across the UAE in 2017. Excise tax is a form of indirect tax levied on specific goods which are typically harmful to human health or the environment. These goods are referred to as “excise goods”. When considering whether a product is an excise good, the following definitions apply:

  • Carbonated drinks include any aerated beverage except for unflavored aerated water. Also considered to be carbonated drinks are any concentrations, powder, gel, or extracts intended to be made into an aerated beverage.
  • Energy drinks include any beverages which are marketed, or sold as an energy drink, and contain stimulant substances that provide mental and physical stimulation, which include without limitation: caffeine, taurine, ginseng and guarana. This also includes any substance that has an identical or similar effect to the aforementioned substances. Also considered to be energy drinks are any concentrations, powder, gel or extracts intended to be made into an energy-enhancing drink.
  • Tobacco and tobacco products include all items listed within Schedule 24 of the GCC Common Customs Tariff.

From 1 December 2019, the excise tax will be levied also on:

  • Electronic smoking devices and tools
  • Liquids used in such devices and tools
  • Sweetened drinks.

The rate of the excise tax is as follows:

  • 50 per cent on carbonated drinks
  • 100 per cent on tobacco products
  • 100 per cent on energy drinks
  • 100 per cent on electronic smoking devices
  • 100 per cent on liquids used in such devices and tools
  • 50 per cent on any product with added sugar or other sweeteners.

The process of offering knowledgeable counsel to firms on issues pertaining to excise is known as excise consultation. This can involve offering guidance on risk management, compliance, and tax planning. Excise consulting frequently possesses a thorough understanding of the Excise consultancy regime and may offer firms insightful advice on how to successfully navigate the Excise environment. Engaging an Excise consultancy may be the best option for you if your company needs assistance with Excise-related issues. There are several things you ought to be aware of. First, there is the excise duty, which is a tax placed on products like alcohol and tobacco that are deemed detrimental to society.

The kind of items you sell and the nation in which you sell them will determine how much excise duty you must pay. You must have a thorough understanding of the excise tax system in order to launch your own excise consultancy. You should also be knowledgeable about the various commodities that are subject to the excise consulting tax. Finally, in order to succeed, you must have a strong business plan in place. 

One of the top suppliers of excise consultancy, accounting services, withholding tax, VAT return filing consultancy, audit services in UAE, and other services is Forthright Consultancy. Other services that we provide include tax planning, corporate tax in UAE, and individual tax. Our staff is made up of seasoned professionals that are committed to giving our customers the best possible service. We are dedicated to giving our clients the best service possible and are proud of our reputation for excellence and integrity.

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Office 938, Business Tower, Burjuman, Dubai, UAE

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