A new UAE excise tax measure on vaping products takes effect today.
While excise tax on vapes and e-liquids has been in place since 2019, the new measure introduces a minimum excise price for vaping liquids. From September 1, liquids used in electronic smoking devices and tools will be subject to a minimum excise price of AED 1 per millilitre (mL).
The Ministry of Finance said the decision is aimed at enhancing the implementation of excise tax and supporting compliance with the UAE’s tax legislation.
What changes under the new UAE tax measure?
Under the decision, the minimum excise price of AED 1 per mL will apply to liquids used in electronic smoking devices and tools. The measure does not change the excise tax rate. Instead, it introduces a minimum price for the liquids on which excise tax is applied.
The UAE levies excise tax at a rate of 100 per cent on all tobacco products covered under the excise tax regime.
What happens to cigarettes and other tobacco products?
The existing minimum excise price will continue to apply to cigarettes, water pipe tobacco, ready-to-use tobacco products and similar products.
No change has been made to the minimum excise price applying to those products under the decision. The change from September 1 applies to liquids used in electronic smoking devices and tools.
Why has the UAE introduced the change?
The Ministry of Finance said the decision is intended to keep pace with developments in the market for excise goods.
It said the measure would also ensure the consistent application of standards across categories of tobacco and electronic smoking products. The ministry said the decision supports tax compliance and helps limit practices that may affect the implementation of excise tax.
