UAE moves to abolish excise tax on select goods from 21 September 2026
The UAE is set to remove excise tax on certain categories from 21 September, with direct implications for affected businesses' compliance calendars.
# What is changing and when
The UAE is preparing to scrap excise tax on a category of goods effective 21 September 2026, according to Time Out Dubai. The change comes into force within days of today's date, giving businesses minimal runway to adjust their systems and filings.
Excise tax in the UAE has historically applied under the current excise framework to categories including carbonated drinks, tobacco products, energy drinks and sweetened beverages, with subsequent expansions covering electronic smoking devices. Any removal or narrowing of the excise net changes the compliance obligations for manufacturers, importers and stockists who have been registering, filing and remitting under the excise framework.
The Federal Tax Authority's Tax Agents Forum 2026, held on 14 September, underlines how active the current regulatory moment is. According to both WAM and Zawya, the FTA convened the forum specifically to align registered tax agents with updated guidance, signalling that practitioners and businesses alike should expect procedural updates in parallel with any legislative change.
# Who this affects in practice
Any business currently registered for excise tax purposes needs to assess whether the goods it handles fall within the category being removed.
Importers and distributors are the most immediately affected. Their stock valuation, pricing structures and customs documentation are built around the excise inclusion. If a product category is de-taxed at the border from 21 September, the obligation to file excise returns on those goods, calculate tax on deemed imports and maintain the associated stock registers falls away, but only after the relevant filings have been squared off correctly for the preceding period.
Retailers face a secondary consideration: pricing. Where excise tax was passed through to the shelf price, the removal of that cost has to be reflected accurately in accounting records to avoid overstating tax liabilities or misstating margins.
Manufacturers with in-country production for affected categories carry the most complex position. They will have registered production declarations and will need to confirm with their tax agent the exact date from which compliance obligations cease, and whether any transitional stock in the excise warehouse requires a final declaration.
The FTA forum on 14 September was attended by registered tax agents across the country. If a business does not have an agent on record, the proximity of this change makes that a gap worth closing before the 21st.
# What to do about it
First, confirm the precise product category being removed. The Time Out Dubai report establishes the timing; the official Federal Tax Authority portal and the UAE Official Gazette should be checked for the formal decision text before changing any filing or pricing process.
Second, businesses registered for excise tax should speak with their registered tax agent before 21 September to determine whether a deregistration application is appropriate or whether a partial continuation of registration is required for other taxable goods they handle.
Third, accounting and ERP systems should be updated to reflect any change in cost of goods from the effective date. Leaving the excise component active in pricing or purchase-order workflows after the removal date creates reconciliation problems at the next return period.
Fourth, any excise tax previously collected on goods that remain in stock but unsold at the changeover date may give rise to an adjustment claim. This is a technical point best handled with a tax adviser who can review the specific stock position against FTA guidance.
Finally, watch for any announcement from the FTA on deregistration procedures or transitional provisions. The forum held on 14 September suggests official guidance is forthcoming through the registered agent network.