Businesses operating in the UAE involved in the manufacturing, importing, exporting, or storage of excise goods are mandated to register for the Federal Excise Tax. This requirement extends to those engaged in dealing, releasing, transferring, or trading such goods, necessitating registration under the Excise Tax regime in the UAE.

The inception of the Excise Tax in 2017 targeted tobacco products, carbonated drinks, and sport or energy drinks. Subsequently, in 2019, the government expanded the scope of the Excise Tax to encompass e-cigarettes, soft drinks, and e-liquids. This strategic move reflects the UAE government’s commitment to levying taxes on products that pose risks to human health and the environment.

For businesses engaged in any facet of the production or distribution of such products, compliance with Excise Tax registration becomes imperative. This taxation framework aligns with the government’s objective of mitigating the impact of goods that adversely affect public health and environmental well-being.