Do importers of energy drinks have to register for excise tax?
Yes - if you import energy drinks into the UAE, energy drinks are treated as excise goods and importing them is a taxable activity, so you're expected to register for excise tax before doing this business.
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The detail
Under Article 2 of the Federal Decree-Law and the Cabinet Decisions on Excise Goods, energy drinks are designated Excise Goods and importation of Excise Goods is one of the activities on which Excise Tax is imposed. There is no de minimis threshold mentioned for excise tax (unlike VAT), so anyone conducting an import activity involving a listed Excise Good falls within scope of the tax.123
What the law says
What it depends on
- The obligation arises specifically from the act of importing (or producing, releasing, or stockpiling) the Excise Good in the course of business.2
Check before you rely on it
- Confirm the product meets the definition of an energy drink used by the FTA for excise classification
- Confirm you are the importer of record for the goods
Sources (4) — read the official text
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Article 2 - Excise Goods
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Article 2 - Excise Goods For the purposes of Article 2 of the Decree-Law, Tax shall be applicable on the following Excise Goods: 1. Tobacco and tobacco products 2. Liquids used in electronic smoking devices and tools 3. Electronic smoking devices and tools 4. Carbonated drinks 5. Energy drinks 6. Sweetened drinks
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Article 2 - Application and Scope of Tax
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Article 2 - Application and Scope of Tax 1. The provisions of this Decree-Law shall apply to the Excise Goods specified by a Cabinet Decision at the suggestion of the Minister. 2. Tax shall be imposed on the following activities related to Excise Goods: a. Production of Excise Goods in the State, where such production was in the course of doing business. b. Import of Excise Goods. c. Release of Excise Goods from a Designated Zone. d. Stockpiling of Excise Goods in the State, where such Stockpiling was in the course of doing business.
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Article 2 – Excise Goods
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Article 2 – Excise Goods For the purposes of Article 2 of the Decree-Law, Tax shall be applicable on the following Excise Goods: 1. Tobacco and tobacco products. 2. Liquids used in electronic smoking devices and tools. 3. Electronic smoking devices and tools. 4. Energy drinks. 5. Sweetened drinks.
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Article 12 – Tax Rates
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Article 12 – Tax Rates For the purposes of Article 3 of the Decree-Law, Tax shall apply to the Excise Goods stipulated under Article 2 of the Decision pursuant to the following rates: Excise Good Tax Rate Tobacco and tobacco products 100% Liquids used in electronic smoking devices and tools 100% Electronic smoking devices and tools 100% Carbonated drinks 50% Energy drinks 100% Sweetened drinks 50%
Written by AI from the FTA sources above and checked before display. Not tax advice or official FTA information - confirm with a tax adviser before you act. Full disclaimer
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Related questions
- What is excise tax in the UAE?
- Which products are subject to excise tax?
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- Who has to register for excise tax?
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