Excise tax on new products from 1st Dec 2019

UAE Federal Tax authority (FTA) has published Ministerial decision No. 236 of 2019 which confirmed the implementation date of excise tax on the below category of products from 1st Dec 2019:

• 1.
• Sweetened drinks – a product to which a source of sugar or other sweetener is added that is produced in any of the following forms:

• 1.
• 1.
• A ready-to-drink beverage intended to be used as a drink;

• 1.
• 2.
• Concentrates, powders, gel, extracts or any form that can be converted into a sweetened drink

• 2.
• Electronic smoking devices and tools – whether or not they contain nicotine or tobacco

• 3.
• Liquids used in electronic smoking devices and tools – whether or not they contain nicotine or tobacco

Excise tax rates:

Sweetened drinks	50%
Electronic smoking devices and tools	100%
Liquids used in electronic smoking devices and tools	100%

What businesses need to do?

• ●
• Review their products to identify if they fall into new category of excisable products

• ●
• Register their business for excise tax or amend their excise tax registration (as required) as soon as possible

• ●
• Register the products with FTA to avoid any issues later during importation etc.

• ●
• Review the flow of transactions related to new excisable products and determine the tax points and tax liability

• ●
• Review the stockpiling conditions to determine the tax liability on excess excise goods (if any)

This document is only for information purposes and should not be construed as advice. It does not necessarily cover each aspect of the topic with which it deals. You should not act upon the contents of this document without receiving formal advice on your particular circumstances.

If you would like to discuss any tax-related matters, please drop us an email at info@premier-brains.com or call us at + 971 4 3542959.

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