# UAE excise tax calculator

> UAE excise tax is 100% on tobacco products, energy drinks and electronic smoking devices and liquids. From 1 January 2026, sweetened drinks are taxed per litre according to their sugar content instead of at 50% of price. VAT of 5% is then charged on the price including excise.

Interactive calculator: https://www.countify.ae/tools/excise-tax-calculator · Updated 2026-10-14 · Countify UAE

## Excise at 100% on AED 20,000 of products

1,000 units at AED 20.

| Product | Excise tax | VAT on price plus excise (5%) | Total tax |
| --- | --- | --- | --- |
| Tobacco | AED 20,000.00 | AED 2,000.00 | AED 22,000.00 |
| Energy drinks | AED 20,000.00 | AED 2,000.00 | AED 22,000.00 |

Importers, producers and stockpilers of excise goods must register for excise tax regardless of turnover.

## Who must register

Anyone importing, producing or stockpiling excise goods, or releasing them from a designated zone, must register for excise tax with the FTA; there is no turnover threshold. Excise returns are filed monthly. Retailers that buy duty-paid goods locally do not usually register.

## Legal basis

- Federal Decree-Law No. 7 of 2017 on excise tax, as amended, and Cabinet Decisions on excise goods and rates (https://tax.gov.ae/en/legislation.aspx)

## Frequently asked questions

### What is the excise tax rate in the UAE?

100% on tobacco, energy drinks and vaping products. Sweetened drinks are taxed per litre by sugar content from 2026.

### Is VAT charged on top of excise tax?

Yes. VAT is calculated on the price including excise tax.