Excise Tax in the UAE

Excise tax is the UAE tax that catches businesses by surprise, for one structural reason: it has no registration threshold. Import a single consignment of an excise good and you were required to register before you did it. On 1 January 2026 the rules for sweetened drinks changed shape entirely, from a flat percentage to an amount per litre banded by sugar content. Checked on 8 August 2026; the rates were rechecked on 3 October 2026.

Rates as they stand now

The tiered volumetric model for sweetened drinks

Cabinet Decision No. 197 of 2025 replaced the flat rate with a model that ties the amount per litre to total sugar and other sweeteners per 100 ml. It took effect on 1 January 2026.

The middle band is AED 0.79 per litre. That is the figure in Cabinet Decision No. 197 of 2025 itself and in the FTA’s own Excise Taxable Person Guide (ETGTP2, February 2026). One FTA web page, the one that sets out how to calculate the tax, shows AED 0.97, which does not match the decision. If you have seen both numbers quoted elsewhere, this is why.

What counts as a sweetened drink

A product to which a source of sugar, artificial sweeteners or other sweeteners is added, and which is intended for consumption as a drink. Crucially, that is not limited to the bottle on the shelf: concentrates, powders, gels and extracts that can be converted into a drink are inside the scope. A powdered drink mix is an excise good.

Outside it: 100 per cent natural fruit and vegetable juices with no added sugar, drinks containing at least 75 per cent milk or milk substitutes, baby formula and baby food, beverages for medical or dietary use, and drinks prepared on the premises in an open container for immediate consumption. Energy drinks are also outside the sweetened-drink model, but only because they are taxed at 100 per cent of the excise price instead (in practice half of the designated retail sales price), which is worse, not better.

The certificate you now need before you can price anything

Because the band depends on measured sugar content, the model needs evidence. From 1 January 2026 producers, importers and stockpilers of sweetened drinks obtain a conformity certificate for sugar and sweetener content through the Ministry of Industry and Advanced Technology, on the back of laboratory results from an accredited laboratory. The consequence of not producing it is specific and expensive: tax applies at the highest sugar category, and is adjusted only when approved laboratory evidence is submitted. Lab testing is not paperwork here, it is the difference between AED 1.09 and nil.

Who registers, and when

Registration is required if you import excise goods into the UAE, produce them for consumption here, stockpile them in certain cases, or operate an excise warehouse or designated zone. The FTA is explicit that there is no registration threshold, so the volume of your first shipment is irrelevant. Registration goes through EmaraTax, and returns are filed by the 15th day following the end of each tax period. Excise sits alongside VAT rather than replacing it, and the VAT refund routes are a separate matter with their own timetable.