Excise tax will be applied to the retail selling price of the goods, at the rate applicable to the excise good in question e.g. excise tax will apply at a rate of 100% to the retail selling price of tobacco products. If the selling price of a cigarette packis AED 10, excise tax @ 100% would be AED 10, with total retail selling price of AED 20.

Details on identification of retail selling price will be issued in due course.The advertised prices of Excise Goods shall be inclusive of the Tax.

What is the point of taxation for Excise Tax?

Excise Tax shall be calculated as per the following dates:

1. The date of Import of Excise Goods.

2. The date on which the Excise Goods were acquired by the Stockpiler, and if such acquisition has happened before the effective date of the Excise Decree-Law, the date of calculating Excise tax shall be the effective date of this Excise Decree-Law.

3. With the exception of the two cases mentioned in (1) and (2), Excise Tax shall be calculated based on the date on which Excise Goods were released for consumption pursuant to what is specified in the Executive Regulation of this Decree-Law.

How Excise TaxDue is calculated?

The Payable Tax owed by a Taxable Person shall be calculated for any Tax Period as the Due Tax from the Taxable Person for such Tax Period less the total Deductible Tax as calculated below.

The Deductible Tax consists of the following:
a. The Tax paid on Excise Goods which have been exported;
b. The Tax paid on Excise Goods which have become a component of another Excise Goods which is, or will become, subject to tax;
c. Amounts paid to the Authority in error.

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