Alcohol in Abu Dhabi No Longer Tax Free

June 14, 2018 Taxation in UAE

alcohol tax in Abu DhabiABU DHABI – Alcohol will no longer be tax-free in Abu Dhabi, and the licenses needed to buy it will soon also carry their own cost.

From June 15th Abu Dhabi will be enacting a new tax on alcohol sales on stores, along with a fee for the grant of a license to purchase alcohol.

The rate of tax on the sale of alcohol will be set at 30 percent, matching the rate already set in place in Dubai.

The tax is intended to be levied on sales from stores, however, there is not yet confirmation of whether the tax will apply to alcohol sold in bars or restaurants.

Local media has reported that some retailers are offering discounts in order to encourage consumers to stock up on alcohol prior to the implementation of the tax.

The tax will be accompanied by a new fee for a license to purchase alcohol, which will cost AED 230, and will also require applicants to meet a minimum requirement for age, income, while also holding residence cars and not being Muslim.

It is expected that the revenues from the tax will at least partially offset the drop in tax revenues arising from the reduction in the rate of tourism and municipality fees announced earlier this week.

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