If your business in Dubai or anywhere in the UAE sells or deals in tobacco, energy drinks, vapes, sweetened drinks, or similar products, you must complete UAE Excise Tax registration. Excise Tax is a special tax the UAE applies to products that can harm health or damage the environment. It was introduced in 2017 and continues in 2026, with revised rates (particularly for sweetened drinks).
The guide covers who must register, the steps to follow on the EmaraTax portal, key deadlines, required documents, penalties, and what happens after registration.
What Is UAE Excise Tax?
Excise tax is an indirect tax imposed on certain goods. The producer, importer, or stockpiler pays the tax, not the end-user (the customer buying from the shop). It aims to discourage the use of certain goods that may have detrimental effects while also raising funds for public services.
Goods subject to Excise Tax in 2026 (under Cabinet Decision No. 197 of 2025, effective 1 January 2026):
- Tobacco and tobacco-related products (including electrically heated cigarettes) – 100%
- Liquid for electronic smoking devices and tools – 100%
- Electronic smoking devices and tools (vapes, etc.) – 100%
- Energy drinks – 100%
- Sweetened drinks (according to the new system, depending on the amount of sugar per 100 ml):
-
- 8 grams or more sugar/sweeteners → AED 1.09 per liter
- Sugar or sweetener content of at least 5 grams but below 8 grams → AED 0.79 per liter.
- Less than 5 grams or only artificial sweeteners → AED 0
Carbonated beverages are no longer classified separately. They fall under the taxable sweetened beverages category if they contain sugars or other sweeteners. Unflavored sparkling water is normally exempt from tax.
There is no minimum turnover for registration. A single transaction of import or production will be sufficient for registration purposes.
Who Must Register for Excise Tax in the UAE?
Excise Tax is the responsibility of any Person engaged in any of the following taxable activities:
- Importing excise goods into the UAE.
- Manufacturing excise goods within the UAE.
- Releasing excise goods from a Designated Zone in the UAE.
- Stockpiling excise goods in the UAE for business purposes when excise tax has not previously been paid on those goods in the country, subject to the applicable conditions.
This applies to mainland enterprises, free zone firms, and individuals engaged in business.
Exceptions to Registration
The FTA may exempt a Person from registration if they do not regularly Import Excise Goods into the UAE. The term “regular” is interpreted to mean more than once in 6 months or more than three times over 24 months.
Individuals importing excise goods for personal use or purposes unrelated to business activities may also qualify for an exemption from registration. You must apply to the FTA for this exception; even if granted, you must still pay the Excise Tax due on the goods at the time of import.
For example: Mr. X Imports Excise Goods worth 10,000 AED on 1 March 2022. It is his first import of Excise Goods, and he does not intend to import Excise Goods in the future. Being involved in just one Import of Excise Goods in the span of 6 months, Mr. X does not need to register for Excise Tax. However, Mr. X must pay Excise Tax on the total value of the goods to clear them from Customs.
UAE Excise Tax Registration Deadline
There is no registration threshold for Excise Tax. Any person who engages in or intends to engage in any of the activities listed must inform the FTA within 30 days after the end of the month in which the activity began or the intention was formed, unless exempt from registration.
- Best practice: Apply for registration before your first import, production, or release.
- The FTA considers the completed application in approximately 20 business days.
- If you miss the deadline, the FTA can register you automatically and charge tax plus penalties from the date the obligation started.
Warehouse Keepers should register before setting up a Designated Zone.
How to Register for Excise Tax on EmaraTax: Step-by-Step Guide
All registration is on the official EmaraTax portal. It is available 24 hours a day, 7 days a week.
Step 1: Sign Up for or Access Your EmaraTax Account
Go to the FTA website and register using your email and mobile number or UAE PASS. Activate the account.
Step 2: Make or choose a Taxable Person profile
Enter the business information, whether it is a legal entity or an individual.
Step 3: Register for the Excise Tax
In the dashboard, click “Register” under the Excise Tax.
Step 4: Enter all the information accurately
Enter business information, trade license information, type of activities (import, produce, stockpile, release from Designated Zone, warehouse keeper), expected volumes, and the types of goods that you will be dealing with.
Step 5: Upload documents
The common documents include:
- Valid Trade License / Business License
- Certificate of Incorporation, Memorandum of Association or Partnership Agreement (if any)
- Emirates ID and Passport of the authorizedsignatory
- Proof of authorizationfor the signatory
- Official statement on company letterhead with signature and stamp showing type of activity, goods, and the startdate of the activity
- Bank letter with account information
- Invoice, contract,or purchase order (if any)
- Any other document that the system may require
Step 6: Submit and wait
Once you have reviewed all the details, submit the application to the FTA for processing. The authority generally takes around 20 business days to respond. Upon approval, you will receive an Excise Tax Registration Number as part of your Tax Registration Number (TRN).
Make sure to keep your login information safe. You will be using the same EmaraTax account for the return and payment process.
After Registration: Returns, Payments and Ongoing Duties
- The taxation periodis usually one calendar month.
- The tax period is usually one calendar month.
- Excise tax returns must be filed, and any tax due must be paid, within 15 days after the end of the relevant tax period, or by the next working day if the deadline falls on a weekend.
- The declarations for imports and Designated Zone releases are automatically included in the monthly return.
- In some cases, you also need to register products inthe FTA price list.
- You must also notifythe FTA of changes to your name, address, or activity.
Penalties for Non-Compliance (2026)
- Failing to register on time can cost AED 10,000.
- Late filing of returns: AED 1,000 (first offense) or AED 2,000 (repeat within 24 months).
- Late payment attracts a monthly penalty calculated at 14% per annum on the unpaid amount (under Cabinet Decision No. 129 of 2025, effective 14 April 2026).
Other penalties apply for incorrect returns, failure to display tax-inclusive prices, or Designated Zone violations. The FTA can also seize non-compliant goods.
Why Register Early and Stay Compliant?
Registering on time helps you avoid penalties, customs delays, and possible seizure of goods. It also allows you to claim refunds on exports.
Many companies in Dubai import or distribute food, beverages, tobacco, and vaping products; getting the registration right protects your operations.
Need Help with UAE Excise Tax Registration in Dubai?
Businesses unsure whether their products are taxable, which documents they need, or how to complete the EmaraTax application may benefit from professional tax assistance. BusinessTax in UAE (BTU) supports UAE Excise Tax Registration, EmaraTax filing, and compliance with FTA requirements. Professional assistance can help businesses understand their registration obligations, organize supporting documents, and manage relevant tax procedures. For further information and the latest regulatory requirements, consult the official website of the Federal Tax Authority.
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