UAE Amends Excise Tax Executive Regulation

The MoF (Ministry of Finance) has issued Cabinet Resolution No. (198) of 2025, introducing amendments to the executive regulation governing excise tax in the UAE. These changes update provisions originally set out in Cabinet Resolution No. (37) of 2017, which supports Federal Decree-Law No. (7) of 2017 on Excise Tax.

The amendments follow recent updates to Federal Decree-Law No. (7) of 2025 and are designed to align the executive regulation with the revised primary legislation.

What Has Changed

The resolution focuses on three main areas: tax registration procedures, excise tax deductions, and refund requests. The MoF has also made refinements to other provisions within the executive regulation to improve clarity and operational efficiency.

For businesses that import, produce, or stockpile excise goods, these updates affect how you register, calculate deductions, and submit refund claims. The procedural changes are intended to reduce ambiguity and make compliance more straightforward.

Why These Amendments Matter

The UAE continues to refine its tax framework to meet international standards. This resolution is part of that broader effort. For taxable persons, the practical benefit is clearer guidance on obligations and processes.

A well-defined regulatory environment reduces the risk of errors and disputes. It also makes it easier to plan and budget for tax liabilities, particularly for businesses dealing with excise goods such as tobacco, energy drinks, carbonated beverages, and sweetened drinks.

Who Is Affected

Any business registered for excise tax, or required to register, should review how these amendments apply to their operations. This includes:

Manufacturers of excise goods produced within the UAE. Importers bringing excise goods into the country. Stockpilers holding excise goods in certain circumstances. Warehouse keepers operating designated zones.

If your business falls into any of these categories, it is worth confirming that your registration details are current and that your internal processes reflect the updated requirements.

Steps for Compliance

Review the amended provisions as published by the MoF. The Ministry has issued FAQs (Frequently Asked Questions) on its website to clarify the changes.

If you handle excise tax deductions or have pending refund requests, check whether the new rules affect your submissions. Adjustments to calculation methods or documentation requirements may apply.

Businesses that have not yet registered but meet the criteria should act promptly. The updated registration provisions may change thresholds or timelines.