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The UAE is expected to amend Excise Tax rules, introducing a tiered-volumetric model for Sweetened Drinks. This Public Clarification highlights key changes taxable persons should prepare for, effective as early as 1 January 2026.
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Sweetened Drinks will be broadly defined to include products with added sugar, artificial sweeteners, or other sweeteners, whether ready-to-drink, concentrates, powders, gels, or extracts, produced for consumption in drinkable form.
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Excise Tax will shift from a fixed rate to calculation based on total sugar content, including natural, added, and other sweeteners. Drinks with only natural sugar or only artificial sweeteners will face zero Excise Tax.
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FTA will set a date requiring Sweetened Drinks to be registered as Excise Goods only when supported by a lab report verifying sugar content. This ensures accurate classification and compliance under the new taxation model.
Source: tax.gov.ae
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