UAE Excise Tax Reference 2026 — What Free Zone Companies Need to Know
UAE excise tax applies to specific goods deemed harmful to health. Here is the 2026 reference guide for UAE free zone companies dealing with excisable goods.
In this guide:
UAE Excise Tax — Overview
- Introduced: 2017; separate from UAE VAT
- Who pays: Producers, importers, and stockpilers of excisable goods in UAE
- Rates: Depend on product category
Excisable Goods and Rates
| Product Category | Excise Tax Rate |
|---|---|
| Tobacco and tobacco products | 100% |
| Electronic smoking devices (vapes) | 100% |
| Liquids for electronic smoking devices | 100% |
| Carbonated drinks (non-sweetened) | 50% |
| Energy drinks (containing stimulants) | 100% |
| Sweetened beverages (added sugar) | 50% |
| Flavoured water (with added sweeteners) | 50% |
Free Zone and Excise Tax
- Import to free zone: Excise tax not paid when importing excisable goods INTO a UAE designated free zone (if goods will be re-exported)
- Free zone to mainland: Excise tax becomes payable when excisable goods move from free zone to UAE mainland
- Registration: Excise tax registration via EmaraTax portal if you deal in excisable goods
Who Is Most Affected
- Beverage importers: Soft drinks, energy drinks, juices with added sugar
- Tobacco traders: Cigarettes, shisha, vapes
- Alcohol: Customs duty applies (50%); separate from excise tax framework