Excise tax is an indirect tax levied on the sale of certain goods. These goods are taxable if imported into the UAE, manufactured in the UAE or stockpiled in the UAE.
Excise duty is levied on products that are harmful to humans and the environment. The main purpose of the sales tax is to reduce consumption of these specific goods and limit unhealthy practices.
In certain scenarios, goods are physically labeled to indicate that excise duty has already been paid to the government.
You must register and pay sales tax if you engage in the following activities:
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