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Excise is charged on goods, not on profit, so the numbers live in your stock movements. A well-configured ERP turns item data, receipts and releases into monthly excise figures you can check before filing.
An ERP supports UAE excise tax by storing each item's excise category, rate, sugar tier and excise price, keeping designated zone stock in separate warehouse locations, and capturing import, production and release dates. Monthly excise figures then come from normal stock movements rather than spreadsheets, ready for review before filing on EmaraTax. Confirm product treatment with your tax advisor and the FTA.
Most businesses that need a UAE excise tax ERP already run a stock system of some kind. The trouble is that excise depends on details ordinary inventory setups ignore: which product falls into which excise category, the sugar content of a drink per 100 ml, whether goods were released from a designated zone, and the excise price used for each unit. When those details sit in spreadsheets beside the ERP, the monthly return becomes a reconstruction exercise.
Excise tax in the UAE is administered by the Federal Tax Authority (FTA) under Federal Decree-Law No. 7 of 2017 on Excise Tax, which was amended with changes that took effect on 1 January 2026. It applies to importers, producers and certain stockpilers of excise goods, and to warehouse keepers who run designated zones. Unlike VAT, there is no turnover threshold that lets a small importer of excise goods stay outside the system.
This page explains how an ERP can be set up so excise figures come out of normal operations: purchase receipts, production, transfers and sales. It sits alongside our UAE VAT ERP guidance, because almost every excise business also files VAT and the two taxes interact on the same invoices.
These points summarise the current framework as published by the Ministry of Finance and the FTA. This is general information, not legal or tax advice, and excise rules have changed several times, so confirm the treatment of your products with your tax advisor and the FTA.
Cabinet Decision No. 197 of 2025 lists the excise goods and rates in force from 1 January 2026. Tobacco and tobacco products, electronic smoking devices and tools, the liquids used in them, and energy drinks are taxed at 100%. Sweetened drinks are taxed by litre rather than by percentage.
Drinks with less than 5 g of sugar or other sweeteners per 100 ml, or only artificial sweeteners, carry no excise. Drinks with 5 g to under 8 g are taxed at 0.79 dirhams per litre, and 8 g or more at 1.09 dirhams per litre. The FTA links classification to lab testing and product registration, so the ERP needs the confirmed tier per product.
A designated zone is an FTA-registered location where excise goods can be held with the tax suspended. Registration is renewed annually and the warehouse keeper must describe the inventory system and keep regular records of goods entering and leaving. Excise becomes due when goods are released into free circulation in the UAE.
Registered persons file excise returns for monthly tax periods through EmaraTax, with the return and payment generally due by the 15th day after the period ends. Check the current due date for each period in EmaraTax, because weekend and holiday adjustments apply.
Tax on 100% goods is calculated on an excise price, and the Ministry of Finance published a further Cabinet decision in 2026 on the excise price of tobacco products and e-liquids. Store the price basis on each item and confirm the method that applies to your range.
General information, not tax or legal advice. Rules change; confirm current FTA, MOHRE and Ministry of Finance guidance with your advisor.
These are the configuration checks we run with finance and supply chain teams. Each one closes a gap that otherwise gets patched manually at month-end.
The excise liability is created by a physical event: import, production or release from a designated zone. The ERP's job is to capture that event once and carry the data through to the return.
One shared database: every step updates stock, finance and reports in real time.
None of the four platforms we implement files an excise return for you. They differ in how easily they model per-litre amounts, excise categories and zone stock. Features change between versions and editions, so confirm details against the edition you plan to use.
| Zoho Books and Inventory | Odoo | ERPNext | Dynamics 365 Business Central | |
|---|---|---|---|---|
| Excise category on items | Custom fields on items, used in reports | Product fields or categories, extendable | Custom fields on the Item doctype | Item attributes or extension fields |
| Per-litre or fixed amounts | Usually handled as a calculated field or line item | Taxes can use fixed amounts per unit | Charge types based on item quantity are available | Typically handled through an extension or partner localization |
| Designated zone stock | Separate warehouses in Zoho Inventory | Separate warehouses and locations | Separate warehouses with stock ledger | Separate locations with item ledger |
| Monthly excise summary | Custom report or Zoho Analytics | Custom report from stock moves and invoices | Script or query report | Report built on item ledger entries |
| Best fit | Smaller importers with simple ranges | Producers and distributors running stock, manufacturing and sales together | Teams wanting open-source control and custom reports | Mid-size groups with several entities and complex dimensions |
Whether a specific product appears on the FTA's Tax Accounting Software Register should be checked on the FTA's current register.
Durations are hedged ranges for a focused excise workstream inside an existing or new ERP. Large product ranges and pending lab results take longer.
Durations are typical ranges; your plan is agreed after discovery.
We list every item you import, produce or store, map it to an excise category and flag drinks that need sugar data or a pending lab result.
We design the excise fields, units of measure in litres, and the warehouse structure that separates designated zone stock from duty-paid stock.
Fields, tax rules, document flows and the monthly excise summary are built and tested with sample transactions.
Your team prepares the next return both ways, from the old process and from the ERP, and we explain every difference before you rely on the new figures.
We support month-end review, period locking and any corrections until the process runs without us.
Excise rarely stands alone. These pages cover the VAT, inventory and free zone sides of the same operations.
On-site workshops in Dubai, Abu Dhabi and Sharjah, and remote or on-site delivery across the Northern Emirates and free zones.
Official sources and references
Facts on this page were checked against these sources in October 2026. Rules change, so confirm current requirements before acting.
Still have a question? Our consultants are happy to help.
Ask an ExpertIt can calculate the figures if items, units and warehouses are set up correctly, but filing happens on EmaraTax. In most setups your team reviews the monthly summary, reconciles it to stock movements and enters or uploads the return. Keep a person accountable for that review.
Store the sugar content per 100 ml and the resulting tier on each product, along with the lab report reference and the FTA product registration status. The ERP should then calculate excise per litre from the quantity and pack size. If a product's classification is not yet confirmed, treat it conservatively and check with your tax advisor.
Separate stock for each designated zone, with every receipt, internal move and release dated and linked to documents. The FTA asks warehouse keepers to describe their inventory system when registering a zone, so the ERP's stock ledger becomes part of your evidence.
Usually yes, because excise generally forms part of the value on which VAT is charged when the goods are sold. Your tax codes and invoice layout should reflect that. Agree the treatment with your tax advisor and test it on sample invoices before go-live.
Often, yes. If you run Zoho, Odoo, ERPNext or Dynamics 365 Business Central, we can usually add fields, warehouses and reports without a full reimplementation. If you are on QuickBooks, Tally or Sage, we do not implement those products, but we can migrate you to a platform that handles excise data better.
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Share your product list and last excise return, and we will show where the ERP can produce those figures for you.
Dubai, United Arab Emirates
