From 1 January 2026, the UAE’s excise treatment of sweetened drinks uses a sugar-content model rather than one flat treatment for every drink. The applicable category depends on the product and its sugar content per 100 ml; businesses should verify classification, registration and evidence with the Federal Tax Authority.
What changed
The UAE introduced a tiered excise approach for sweetened drinks from 1 January 2026. The relevant factor is the amount of sugar in the drink, measured per 100 ml, rather than simply the name or general type of beverage. That makes the product formulation and its supporting information central to the tax assessment.
Sugar level affects the band
The model separates products by their sugar concentration: drinks with a lower sugar level are treated differently from products with higher concentrations. The applicable excise amount is therefore not safely calculated from a generic label such as “soft drink”; the business must use the current FTA rules and the product’s documented composition.
Who needs to review the rules
Manufacturers, importers, warehouse operators and other businesses involved in excise goods should review whether their products fall within the sweetened-drinks definition and which declaration obligations apply. The answer depends on the product and the role of the business in the supply chain; it is not a universal result for every drink seller.
Check formulation and records
A practical review starts with the recipe, nutrition information, pack size and records supporting the sugar calculation per 100 ml. Businesses should also check the current FTA guidance, registration position and filing process before pricing or importing a product. Product reformulation can change the applicable band, but it does not remove the need for a formal classification check.
The policy goal
The sugar-content structure is intended to support healthier consumption choices and encourage producers to reduce sugar in beverages. For businesses, the consumer-facing result is only one part of the change: the product’s tax treatment must be assessed against the official technical and excise requirements.