Source : WAM
Starting 1 January 2026, the UAE will implement a new Excise Tax calculation system for sweetened drinks, based on the “Tiered-Volumetric Model.”
Under this system, the tax per litre of a sweetened beverage will depend on the total sugar and other sweeteners per 100 ml. This aligns with Cabinet Decision No. 197 of 2025 on Excise Goods, Tax Rates or Amounts Imposed on Excise Goods, and the Methods of Calculating the Excise Price, effective 1 January 2026, in accordance with amendments to Federal Decree-Law No. 7 of 2025 on Excise Tax.
The Federal Tax Authority (FTA) stated that the decision supports the leadership’s directives to promote a healthy society by reducing consumption of harmful products and mitigating social and economic impacts of non-communicable diseases linked to unhealthy consumption patterns.
To ensure smooth implementation, the FTA has launched a new service on the EmaraTax digital platform for registering sweetened drinks under the tiered-volumetric model, replacing the current fixed-rate method. The platform uses advanced AI technology to provide a simple, fast, and efficient registration process, enhancing user experience.
From 1 January 2026, all producers, importers, and stockpilers of sweetened beverages must obtain an “Emirates Conformity Certificate for Sugar and Sweeteners Content in Beverages (for Excise Tax purposes)” from the Ministry of Industry and Advanced Technology’s official website. Certificates must be issued based on lab tests from accredited laboratories listed by the UAE’s National Accreditation Department or Emirates International Accreditation Centre.
The certificate must be submitted to the FTA when registering or updating the registration of beverages through EmaraTax. Drinks without a certificate will be classified as “High Sugar” until a lab report confirms compliance.
The FTA has conducted an awareness campaign, including a public clarification in September explaining the key amendments, available here: Public Clarification on Excise Tax – Transition to a Tiered Volumetric Model for Excise Tax for Sweetened Drinks. Detailed information on the mechanism, objectives, requirements, and sugar measurement is available here: Excise Tax under the Tiered-Volumetric Model. Related legislation can be found here: Legislation.
Under the new model, Excise Tax will be calculated based on total sugar content (natural, added, and artificial) and other sweeteners in beverages. Products containing only natural sugar are exempt. Non-ready-to-drink products like concentrates, powders, gels, and extracts must provide sugar content and servings per preparation instructions to avoid registration suspension affecting imports.
Carbonated drinks will no longer be treated as a separate Excise Goods category; tax applicability will be based on sugar and sweetener content. Energy drinks remain taxed at 100% of the excise price and are excluded from the tiered-volumetric model.
The Excise Tax rates for sweetened drinks under the new model are:
- High-sugar Sweetened Drinks: ≥8 g sugar/sweeteners per 100 ml – AED 1.09 per litre.
- Moderate-sugar Sweetened Drinks: ≥5 g and <8 g sugar/sweeteners per 100 ml – AED 0.79 per litre.
- Low-sugar Sweetened Drinks: <5 g sugar/sweeteners per 100 ml – AED 0 per litre.
- Artificially Sweetened Drinks: only artificial sweeteners or artificial sweeteners with <5 g sugar/other sweeteners per 100 ml – AED 0 per litre.
