Is excise tax charged on e-cigarettes and vaping liquids?
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Yes. Both e-cigarette devices and the liquids you vape are subject to excise tax when produced, imported, or released for sale in the UAE.
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The detail
Excise Tax applies to electronic smoking devices and tools, and to liquids used in them (whether or not containing nicotine), as these are listed as Excise Goods under Cabinet Decision No. 197 of 2025. Tax is triggered by production in the UAE, import, release from a Designated Zone, or stockpiling in the course of business.12
What the law says
- Excise Tax is imposed on Excise Goods specified by Cabinet Decision, on production, import, release from a Designated Zone, or business stockpiling of those goods.1
- Liquids used in electronic smoking devices and tools, and electronic smoking devices and tools themselves, are designated as Excise Goods.2
- The applicable liquids are those falling under specified Customs HS codes covering such liquids whether or not they contain nicotine.34
What it depends on
Check before you rely on it
- Confirm the product's HS code matches the designated classification for e-liquids or devices.
- Check whether the goods are being produced, imported, released from a Designated Zone, or stockpiled in a business context.
Sources (4) — read the official text
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Article 2 - Application and Scope of Tax
Read the article
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 1 – Liquids used in Electronic Smoking Devices and Tools
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Article 1 – Liquids used in Electronic Smoking Devices and Tools Excise Tax shall be imposed on liquids used in electronic smoking devices and tools, and the like whether or not containing nicotine pursuant to the following Customs codes: HS Code Item 38249999 Others Ministerial Decision No. 236 of 2019- Issue Date: 29th of September 2019 – Unofficial translation 1
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Article 1 – Liquids used in Electronic Smoking Devices and Tools
Read the article
Article 1 – Liquids used in Electronic Smoking Devices and Tools For the purposes of imposing Excise Tax on liquids used in electronic smoking devices and tools and the like, whether or not containing nicotine, the applicable harmonized system codes specified in Chapter Twenty Four of the Common Schedule for Classification and Coding of Goods for the Gulf Cooperation Council Countries in force in the State shall apply. Ministerial Decision No. 1 of 2025 – As published by the Ministry of Finance 1
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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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