UAE excise tax returns must be filed and payments settled by the 15th day of the month following the end of each monthly tax period, under Articles 17, 18 and 19 of the Executive Regulation — Cabinet Decision No. 37 of 2017 (as amended by Cabinet Decisions No. 108 of 2023 and No. 198 of 2025). The tax period is the Gregorian calendar month. Failure to meet this deadline triggers a late-filing penalty of AED 1,000 and a late-payment penalty of 14% per annum calculated monthly. Abdelhamid & Co (FTA TAAN 20033908, MOE LC0106-01) manages excise tax return preparation, submission, and payment scheduling for registered businesses.
Tax Period for UAE Excise Tax — The Monthly Gregorian Calendar Rule
Article 17(1) of the Executive Regulation establishes that the tax period for excise tax is the Gregorian calendar month. This is a fixed rule — unlike VAT which can have quarterly periods for certain businesses, excise tax is monthly by default. The FTA has authority under Article 17(2) to direct that a newly registered person's first tax period be longer than one month, as a transitional measure from the date of registration. Under Article 17(3–4), the FTA may also approve a request from a taxable person to submit returns on a longer-than-monthly basis, but this requires a formal application and FTA approval — it is not a right the taxable person can elect unilaterally.
For businesses registering mid-month, the first tax period typically begins from the first day of the month in which they started their first excise activity, in accordance with Article 3(3) of the Executive Regulation on the effective date of registration. This means the first return may cover a partial month, but the filing deadline (15th of the following month) still applies.
Tax Return Filing — Deadline and Method
Article 18 of the Executive Regulation specifies that the taxable person must submit the tax return through the means and procedures specified by the Federal Tax Authority — currently the EmaraTax portal. The return must be submitted no later than the 15th day of the month following the relevant tax period. For example, the return for January 2026 must be filed by 15 February 2026; the return for February 2026 by 15 March 2026; and so on throughout the year.
The tax return must capture the Payable Tax for the period — calculated as the Due Tax less any Deductible Tax — in accordance with Articles 15 and 16 of Federal Decree-Law No. 7 of 2017. The return covers all excise activities during the period: imports, domestic production, release from Designated Zones, and any applicable deductions (exports, component goods, rate decreases, or FTA-specified cases under FTA Decision No. 11 of 2025).
Payment of Payable Tax — Deadline and Method
Article 19(1–2) of the Executive Regulation requires payable excise tax to be settled through the means specified by the FTA, no later than the 15th day following the end of the month. This means the filing deadline and the payment deadline are identical: both fall on the 15th of the following month. There is no grace period between filing and payment — unlike some tax regimes where payment follows filing by a set number of days.
Persons excepted from registration under Article 6(3) of the Decree-Law (non-business importers) must settle their due tax at the time of import rather than through a periodic return — they cannot defer payment to the 15th of the following month. Article 19(2) of the Decree-Law (as amended by Federal Decree-Law No. 7 of 2025) also makes clear that any person who receives an amount as tax or issues a tax-related invoice must settle it to the FTA, treated with the same treatment as Due Tax.
Regular Declarations — Pre-Return Import/Production Notifications
Article 20 of the Executive Regulation requires the taxable person to file regular declarations (separate from the monthly tax return) covering: details of excise goods to be imported; details of excise goods produced in the State; and details of excise goods transported from a Designated Zone. The FTA determines the specific deadlines for these declarations. In practice, import declarations are typically filed before or at the time of customs clearance through the FTA's EmaraTax portal, and production declarations are filed before or immediately after production events.
Customs Department Verification Obligations
Under Article 19(3) of the Executive Regulation (as amended by Cabinet Decision No. 198 of 2025), customs departments — based on the tax risk matrix classification determined in coordination with the FTA — must reconcile the type and quantity of excise goods imported into the State with the import declaration received from the importer before releasing the excise goods. For non-registered persons, customs must verify payment of any due tax and fees before release. For exports, customs must reconcile the type and quantity of excise goods with the export documents. This dual-layer verification (FTA return + customs declaration) is a critical compliance point for importers and exporters of excise goods.
Late Filing and Late Payment Consequences
Under Cabinet Decision No. 40 of 2017 (Table 1), the penalty for late filing of an excise tax return is AED 1,000 for the first occurrence and AED 2,000 for a repeat within 24 months. The penalty for late payment of payable tax is 14% per annum, applied monthly (approximately 1.167% per month) on the outstanding amount from the day after the due date. These two penalties are independent — both apply where both a filing delay and a payment delay occur simultaneously.
| Obligation | Deadline | Penalty for breach |
|---|---|---|
| File tax return | 15th of month following tax period | AED 1,000 (first); AED 2,000 (repeat in 24 months) |
| Settle payable tax | 15th of month following tax period | 14% p.a. monthly on unpaid amount |
| File import declaration | Before/at time of import (FTA-specified) | Per Tax Procedures Law + customs release withheld |
| File production declaration | FTA-specified deadline | Per Tax Procedures Law |
Carry-Forward and Refund of Excess Tax
Where Deductible Tax exceeds Due Tax in a period, or where a payment to the FTA exceeds Payable Tax, the excess must be carried forward to subsequent tax periods under Article 20 of the Decree-Law (amended by Federal Decree-Law No. 19 of 2022). The excess is offset against Payable Tax or Administrative Penalties in future periods until depleted. A formal refund application can be submitted only after the excess has been carried forward for the period specified in Article 21 of the Executive Regulation — the FTA is not obligated to refund excess if less than two tax periods have passed since the excess arose. The FTA must decide refund applications within two months of submission, or within 21 days after completion of any audit it undertakes on the claim.
Why Choose Abdelhamid & Co for Excise Tax Return Management
Our team manages the full monthly excise tax cycle: pre-return declaration filing, return preparation, payable tax calculation, payment scheduling, and deductible tax verification. We serve as FTA-registered Tax Agents and provide compliance reviews to validate returns before submission.
Frequently Asked Questions
When is the UAE excise tax return due each month in 2026?
Under Article 18 of Cabinet Decision No. 37 of 2017, the excise tax return for each monthly tax period must be filed no later than the 15th day of the following month. For example, the January 2026 return is due by 15 February 2026.
When must UAE excise tax be paid — is the payment deadline the same as the filing deadline?
Yes. Under Article 19(2) of Cabinet Decision No. 37 of 2017, payable excise tax must be settled no later than the 15th day following the end of the monthly tax period — the same deadline as the tax return. There is no grace period between filing and payment for excise tax.
Can a UAE excise tax registrant choose a quarterly filing period?
Not unilaterally. Under Article 17(3–4) of the Executive Regulation, a longer-than-monthly tax period requires a formal request to the FTA and FTA approval. The default tax period is the Gregorian calendar month and cannot be changed without explicit FTA direction or approval.
What is the penalty for late UAE excise tax return filing?
Under Table 1 of Cabinet Decision No. 40 of 2017, the penalty for late excise tax return filing is AED 1,000 for the first occurrence and AED 2,000 for a repeat within 24 months. A separate late-payment penalty of 14% per annum monthly also applies to any unpaid tax amount.
How long does the FTA have to process an excise tax refund application?
Under Article 21(3) of the Executive Regulation, the FTA must process a refund application within two months of submission, or within 21 days after completing any audit of the refund claim, whichever is later. The FTA may also withhold the refund if the taxable person has outstanding unfiled tax returns.
Related Services
- Excise Tax Return Filing — monthly return preparation and timely submission
- Compliance Review — pre-submission review of excise tax returns
- Tax Agency Service — FTA-registered tax agent representation
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