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Time:2026-08-14
Author:Zhuo Xin
Source:Zhuo Xin
Views:01. What is consumption tax?
The UAE began implementing excise tax in 2017. Excise tax is an indirect tax that is ultimately borne by consumers. This tax is levied on certain specific goods that are harmful to human health or the environment, such as tobacco, energy drinks, carbonated drinks and sugary drinks.
2. What is the consumption tax rate?
The consumption tax rate is generally 50% or 100%.
| Consumption taxable goods | tax rate |
| Tobacco, alcohol and tobacco products | 100% |
| E-cigarette equipment and tools | 100% |
| Liquids used in e-cigarette devices and tools | 100% |
| Energy drinks [are beverages containing stimulant substances that provide mental and physical stimulation, including but not limited to caffeine, taurine, ginseng and guarana] | 100% |
| Sugar-sweetened beverages [including any product with added sugar (as determined in accordance with Gulf Standards Organisation (GSO) Standard No. 148) or other sweeteners (as determined in accordance with GSO Standard No. 995)] | 50% |
| Carbonated beverages [including any carbonated beverage other than flavored carbonated water, and any concentrate, gel, extract, etc. designed for the production of carbonated beverages] | 50% |
3. Which companies need to register for a consumption tax number?
Companies engaged in the following activities must register for GST numbers:
1. Importing GST goods into the UAE;
2. Producing GST goods for consumption in the UAE.
3. Storing GST goods in the UAE in certain circumstances;
4. Releasing GST goods in designated areas.
4. How to declare consumption tax?
GST registered taxpayers are required to file GST returns every month. The deadline for filing GST returns is the 15th of every month.
