Until the end of 2025, every sweetened drink in the UAE paid the same excise tax: 50% of the retail price. From 1 January 2026, that flat rate was replaced by a tiered volumetric model: the tax now depends on how much sugar and sweetener a drink contains, and is charged per litre.
The change comes from Cabinet Decision No. 197 of 2025, with FTA decisions and a public clarification setting out the details.
The new rates
The tax is based on total sugar and other sweeteners per 100 ml:
| Category | Sugar and sweeteners per 100 ml | Excise tax per litre |
|---|---|---|
| High sugar | 8 g or more | AED 1.09 |
| Moderate sugar | 5 g to under 8 g | AED 0.79 |
| Low sugar | Under 5 g | AED 0 |
| Artificially sweetened | Only artificial sweeteners, or artificial sweeteners with under 5 g of sugar | AED 0 |
Energy drinks are not part of this model and stay under the existing method.
For products that are not ready to drink, such as concentrates, powders and syrups, the tax is based on the volume of drink they make, following the label's serving instructions.
The conformity certificate
To be taxed in a lower tier, a product needs the Emirates Conformity Certificate for sugar and sweetener content issued through the Ministry of Industry and Advanced Technology (MoIAT), after testing by an accredited laboratory. The certificate is submitted to the FTA when the product is registered or updated on EmaraTax.
Without a certificate, the drink is treated as high sugar and taxed at AED 1.09 per litre, until a lab report shows it belongs in a lower tier.
The transitional deduction and 30 June
Many importers and producers paid tax at the high-sugar rate early in 2026 while their certificates were still being processed. A transitional deduction lets them recover the difference for tax periods from 1 January to 30 June 2026, if:
- the goods had not been sold when the right to the deduction arose,
- they hold a laboratory report showing the lower tier, and
- they have the original excise declaration showing tax paid at the high-sugar rate.
After 30 June 2026, this transitional relief no longer covers new periods, so any open products should be certified now.
Who needs to act
- Producers and importers of sweetened drinks registered for excise tax
- Stockpilers holding stock of excise goods
- Retailers and distributors pricing products, since shelf prices may change as the tax moves from a percentage to a per-litre amount
What to do now
- List every sweetened product and its sugar content per 100 ml.
- Get certificates for products that should be low or moderate sugar.
- Update product registrations on EmaraTax.
- Claim the transitional deduction for eligible stock before the window closes.
- Review pricing and margins under the per-litre tax.
How Dreambooks helps
Dreambooks keeps excise category, sugar tier and certificate details on each product, calculates excise per litre on purchases and sales, and keeps the evidence for transitional deduction claims with the original declarations.
Official sources
- FTA: submit approved conformity certificates to avoid classification as a high-sugar drink
- FTA: Excise Tax legislation
This article is general information as of June 2026, not tax advice. Check Cabinet Decision No. 197 of 2025, the FTA's public clarification on sweetened drinks and the latest guidance, or speak to your tax adviser, before acting.