Excise tax: UAE legislation

Cabinet Decision No. 129 of 2025 Amending Cabinet Decision No. 40 of 2017 on the Administrative Penalties for Violation of Tax Laws in the UAE

Amends the definitions in Article 1 and replaces Tables 1 and 3 of the tax penalties decision, restating the penalties for tax procedures and VAT violations with effect from 14 April 2026; the FTA publishes it within the consolidated text of Cabinet Decision No. 40 of 2017.

Cabinet Decision No. 197 of 2025 on Excise Goods, Tax Rates or Amounts Imposed on Excise Goods, and the Methods of Calculating the Excise Price

Replaces Cabinet Decision No. 52 of 2019 from 1 January 2026: keeps 100% excise on tobacco, e-smoking products and energy drinks, and moves sweetened drinks to a volumetric tax by sugar content (AED 0.79 per litre at 5 to under 8 grams per 100 ml, AED 1.09 at 8 grams or more, zero below 5 grams or artificial sweeteners only).

Cabinet Decision No. 52 of 2019 on Excise Goods, Excise Tax Rates and the Methods of Calculating the Excise Price

Set the excise goods and rates applied from 1 December 2019 to 31 December 2025: tobacco and tobacco products, electronic smoking devices and their liquids and energy drinks at 100%, carbonated drinks and sweetened drinks at 50%, with the method of calculating the excise price; repealed by Cabinet Decision No. 197 of 2025 from 1 January 2026.

Cabinet Decision No. 37 of 2017 on the Executive Regulation of the Federal Decree-Law No. 7 of 2017 on Excise Tax

Implements the Excise Tax Law: registration and deregistration, tax liability and the person responsible, designated zones and warehouse keepers, exemptions, calculation of the excise price, tax returns, payment and refunds; consolidated text as amended by Cabinet Decisions No. 108 of 2023 and No. 198 of 2025.

Cabinet Decision No. 40 of 2017 on the Administrative Penalties for Violation of Tax Laws in the UAE

Sets in three tables the fixed and percentage-based administrative penalties the FTA imposes for breaches of the Tax Procedures Law, the Excise Tax Law and the VAT Law, such as late registration, late returns, late payment, record-keeping failures and incorrect invoices; consolidated as amended by Cabinet Decisions No. 49 of 2021, No. 108 of 2021 and No. 129 of 2025.

Federal Decree-Law No. 7 of 2017 on Excise Tax

Imposes excise tax on goods the Cabinet designates as excise goods (tobacco, energy and carbonated drinks, sweetened drinks, electronic smoking devices and liquids) on their production, import, release from designated zones and stockpiling, with registration, designated zone and refund rules; consolidated text as amended through Federal Decree-Law No. 17 of 2025.