Abu Dhabi to introduce 30% sales tax on alcohol

Alcohol sold in Abu Dhabi off-licence outlets will be subject to 30% taxation from June 15, 2018, according to a circular received by retailers from the Abu Dhabi Department of Culture and Tourism.

The charge will bring the emirate in line with Dubai where a 30% tax on alcohol sold in off-licence outlets is already in force.

Alcohol licences will now also be subject to a fee of AED230 fee. The licenses, which enable non-Muslims to purchase alcohol, were previously free.

It is not known if the fee is inclusive of the 5% VAT that applies to goods and services or is an additional levy.