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.
Reviewed by Countify's ACCA/FCCA chartered certified accountants · Updated
- Excise tax
- AED 20,000.00
- VAT on price plus excise (5%)
- AED 2,000.00
- Total tax
- AED 22,000.00
Excise is charged on the higher of the retail sale price (excluding VAT and excise) and the FTA's standard price list.
Results are estimates for general information, not tailored advice.
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
We review this calculator whenever the FTA or Ministry of Finance issues a new decision or clarification.
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.
Excise and VAT registration
We register importers and producers for excise tax and file excise and VAT returns on time.