The UAE has released the domestic Excise Tax Law

Another step closer to VAT implementation

The United Arab Emirates (UAE) has released the text of its domestic Excise Tax Law.

The Excise Tax Law confirms that the production and import of certain ‘excise goods’ will be subject to excise tax, as will the release of those goods from a designated zone and the stockpiling of those goods in certain cases. The UAE Ministry of Finance has previously announced that excise will be applied on tobacco (100% rate), energy drinks (100% rate) and carbonated drinks (50% rate). It would be reasonable to assume that the authorities will, and producers should, adopt a wide interpretation of what constitutes an excise good but the precise definition will be made available in a later Cabinet Decision.

You can access the law in Arabic and English.

The Deloitte bilingual version will soon be available on the website and under the "Treaties & Legislation" tab on the “VAT in the GCC guide” mobile app.

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