FTA Publishes Guidance EXTP012 on Shifting to Tiered Volumetric Excise Tax for Sweetened Drinks

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.
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.
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.
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.