Excise tax

Excise duty is levied on the specific manufactured goods and becomes payable upon removal of goods from the place of manufacture. The rate depends on the classification of goods and concessions or exemptions available.

United Arab Emirates specifics

The excise tax is applied to the import, manufacture, stockpiling, or release of excisable goods from a Designated Zone. Designated Zones are defined as fenced free zones or any other area under the supervision of a warehouse keeper.

The excise tax is imposed on carbonated drinks (except sparkling water) at a rate of 50%, energy drinks at a rate of 100%, and tobacco products at a rate 100%. The rates quoted apply to the Retail Selling Price (RSP) of the products, or excise price as quoted in the law. Products that are exported from the UAE shall be exempt from excise tax.

How Infor meets the requirement

See the Tax User Guide and the Financials Setup and Administration Guide.