Excise Tax
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Excise Tax Advisory Services in Sharjah, UAE
Excise tax applies to goods that are harmful to health or the environment, such as tobacco, energy drinks, electronic smoking products and sweetened drinks. It has applied in the UAE since 1 October 2017 under Federal Decree-Law No. 7 of 2017, and the rules for sweetened drinks changed on 1 January 2026.
At Hussain Al Shemsi Chartered Accountants, our tax team in Sharjah helps importers, producers, stockpilers and warehouse keepers register, calculate excise correctly, file returns on time and stay ready for FTA audits.
UAE excise tax at a glance
- Law: Federal Decree-Law No. 7 of 2017 on Excise Tax, effective 1 October 2017.
- 100% rate: tobacco and tobacco products, energy drinks, electronic smoking devices and tools, and the liquids used in them.
- Sweetened drinks from 1 January 2026: taxed per litre by sugar content (Cabinet Decision No. 197 of 2025): AED 1.09 per litre for 8g or more of sugar per 100ml, AED 0.79 per litre for 5g to under 8g, and nil below 5g or for drinks with only artificial sweeteners.
- Who registers: importers, producers, stockpilers and designated zone warehouse keepers of excise goods.
- Returns and payment: filed on EmaraTax by the 15th day after the end of each tax period.
How can we help you?
Get in touch with Hussain Al Shemsi Chartered Accountants for expert auditing, accounting, tax, and advisory services in the UAE.
- +971 50 3636231
Our Excise Tax Services
Excise registration
Checking whether you must register and completing registration on EmaraTax, including warehouse keeper registration.
Excise returns and payments
Preparing and filing returns on time and reconciling them to your stock and sales records.
Sugar-based drinks tax
Classifying products by sugar content, organising accepted laboratory reports and applying the correct per-litre rate.
Product registration and pricing
Registering excise goods and their prices with the FTA, and checking the excise price used.
Designated zones and stock movements
Managing goods held or moved in designated zones and the related declarations.
Excise health checks and FTA audits
Reviewing past filings, preparing voluntary disclosures and supporting you during FTA audits.
Who Needs Excise Tax Support?
- Importers of tobacco, energy drinks, vapes or sweetened drinks
- Manufacturers and bottlers of excise goods in the UAE
- Distributors and wholesalers holding large stocks (stockpilers)
- Warehouse keepers in designated zones
- Retailers and online sellers bringing excise goods into the UAE
- Food and beverage brands changing recipes because of the new sugar tiers
Our Excise Tax Process
- Review: we map your products, activities and supply chain to confirm your excise obligations.
- Classify: we classify each product, including sugar content for sweetened drinks.
- Register: we complete or update your registrations and product listings with the FTA.
- File: we prepare each return, reconcile stock and confirm payment before the deadline.
- Monitor: we track FTA updates and review your position regularly.
Why Choose Hussain Al Shemsi
- Excise, VAT and Corporate Tax under one roof, so your returns stay consistent. See our VAT and Corporate Tax services.
- Up to date with the 2026 sugar-based model for sweetened drinks.
- Practical support with stock records, lab reports and FTA queries.
- Based in Sharjah, serving importers, producers and free zone businesses across the UAE.
Frequently Asked Questions
What products are subject to excise tax in the UAE?
Tobacco and tobacco products, energy drinks, electronic smoking devices and tools and their liquids, and sweetened drinks.
What changed for sweetened drinks in 2026?
From 1 January 2026, sweetened drinks are taxed per litre based on sugar content instead of a percentage of price: AED 1.09 per litre for 8g or more per 100ml, AED 0.79 per litre for 5g to under 8g, and nil below 5g.
What if we do not have a lab report for sugar content?
The FTA applies the highest sugar band until an accepted laboratory report is provided, so testing early can reduce your tax.
Who must register for excise tax?
Businesses that import, produce or stockpile excise goods, and warehouse keepers of designated zones.
When are excise returns due?
Returns are filed, and the tax paid, by the 15th day after the end of each tax period.
Is VAT charged on top of excise?
Yes. VAT at 5% is charged on the selling price, which already includes the excise tax. See our VAT services.
Can you help with an FTA excise audit?
Yes. We review your records, prepare explanations and support you throughout the audit.
Get Your Excise Tax Right
Talk to our tax team about registration, returns or the new sugar-based rates.
Official guidance: Federal Tax Authority.
