The vape industry has experienced rapid growth across the UAE, with more individuals turning to vaping as a modern alternative to traditional tobacco. However, with this rising trend comes the implementation of regulations, particularly taxes, that customers and businesses need to understand.

If you’re vaping or considering purchasing vape products in the UAE, understanding vape tax regulations is essential to ensure you’re making informed decisions.

What is vape tax?

Vape tax, also known as excise tax, is a government-implemented tax on specific goods deemed harmful to health or the environment. In the UAE, vape products are taxed under the same bracket as tobacco products to regulate usage and increase public awareness of their potential risks.

The UAE government officially introduced the excise tax on vape products in 2019, targeting both vape devices and e-liquids, whether they contain nicotine or not.

Vape Tax Rates in the UAE

The excise tax in the UAE applies to products deemed harmful to health or the environment. Vape products, including e-cigarettes and e-liquids, fall under this category.

Current Excise Duty Rates:

For instance, if an e-liquid costs AED 50, the final price doubles to AED 100 after adding the excise tax.

Why Did the UAE Introduce Vape Tax?

The UAE government introduced excise taxes on vape products to:

1. Control Consumption: Higher prices aim to discourage excessive usage of vaping products.
2. Generate Revenue: Excise taxes are part of the UAE’s broader economic diversification strategy.
3. Protect Public Health: Vape products are regulated similarly to tobacco to mitigate health risks.

As outlined by the UAE Federal Tax Authority, excise tax policies align with the GCC Unified Excise Tax Agreement, ensuring consistency across Gulf countries.

Key Regulations for Vape Products in UAE

Apart from the excise tax, the UAE enforces strict regulations on the sale, import, and marketing of vape products:

• Import Registration Fee: Importers must pay AED 10,000 per brand for registration, as reported by Ecigator.
• Product Compliance: Vaping devices and e-liquids must meet UAE safety and quality standards.
• Marketing Restrictions: Advertising vape products is restricted to prevent encouraging underage consumption.
• Retail Sales Compliance: All prices must reflect the excise tax. Unauthorized sales may lead to penalties.

For more details, Legal500 highlights these rules in Federal Law No. 15/2009, which regulates the sale of tobacco and vaping products.

How to Calculate Vape Tax in UAE

The excise tax calculation is straightforward but significant:

Final Price = Base Price + (Base Price × 100% Excise Tax)

For example:

• If an e-liquid costs AED 70, the final price will be AED 140 (Base Price 70 + 100% Tax = 140).
• Vape devices, such as mods or pods, are calculated the same way.

The World Health Organization (WHO) further notes that excise taxes are designed to deter consumption by significantly raising prices.

Impact on Businesses and Importers

For Importers:

• Registration Fees: Importers must register every vape device or brand they bring into the UAE, paying a fee of AED 10,000 per brand (Hangsen).
• Compliance: All vape products must meet UAE regulations and be declared for excise tax.

For Retailers:

• Price Transparency: Retailers must include excise tax in their product pricing.
• Penalties for Non-Compliance: Failing to pay or declare excise tax can result in hefty fines.

Can You Bring Vape Products into the UAE?

Many travelers ask, “Can I bring my vape to the UAE?” The answer is yes, but with conditions:

• Vapes are permitted for personal use only.
• Travelers cannot bring vape products intended for resale.
• Carrying excessive amounts may result in confiscation or fines at customs.

UAE Vape Market Trends and Duty-Free Purchases

The vaping market continues to grow in Dubai and the UAE, with events like the World Vape Show highlighting innovation in the industry. However, many customers are turning to duty-free zones for affordable vape products.

More details: Vaping Trends in Dubai

Dubai Duty-Free offers vape products tax-free, but quantities are limited. Customers are advised to verify guidelines before purchasing at airports.

Summary: What to Know About UAE Vape Tax

Here’s a quick breakdown of key points:

Final Thoughts

The 100% vape tax in the UAE reflects the government’s efforts to regulate consumption and promote public health. While prices have increased, this aligns with global practices to ensure safer, responsible vaping.

At Vape UAE, we ensure that all our products are authentic, compliant, and transparently priced, including excise tax. With 24-hour delivery across the UAE, you can rely on us for a seamless, stress-free vaping experience.

Stay compliant, stay informed, and enjoy vaping responsibly!