FTA has issued Public Clarification EXTP013, effective 1 January 2026, setting tiered volumetric Excise Tax rates for Sweetened Drinks and outlining procedures for certificates, concentrated products, and potential tax deductions.
The UAE’s Federal Tax Authority (FTA) has issued Excise Tax Public Clarification EXTP013, dated 29 December 2025, detailing the implementation of a tiered volumetric model for Excise Tax on Sweetened Drinks.
The new model came into effect for all taxable persons on 1 January 2026 and should be read alongside Public Clarification EXTP012, which covers definitions, sugar calculations, and administrative requirements.
Under the tiered-volumetric model, Excise Tax rates for Sweetened Drinks are set as follows:
- High sugar category: AED 1.09 per litre
- Moderate sugar category: AED 0.79 per litre
- Low sugar category: AED 0 per litre
- Drinks containing only artificial sweeteners, or artificial sweeteners with less than 5g of total sugar per 100 ml: AED 0 per litre
The Clarification specifies that if an accredited laboratory report in the form of a MOIAT certificate is not submitted during registration or update of a drink on the EmaraTax platform, the drink will be classified as a high sugar sweetened Drink. For Tax Periods from 1 January to 30 June 2026, a submitted certificate proving lower sugar content or tax exemption allows the difference to be treated as Deductible Tax, subject to requirements in the Clarification.
For Sweetened Drink Concentrated Products—including powders, gels, and extracts—the sugar or sweetener content will be calculated based on the ready-to-drink beverage prepared according to the producer’s instructions. Where instructions are unavailable or inaccurate, the FTA’s Clarification provides a method to determine the sugar content.
The implementation of the tiered model may reduce Excise Tax for certain drinks, enabling potential deductions of excess tax paid. Taxable persons are also required to review stock held on 1 January 2026 to determine whether they are considered stockpilers. Full procedures and conditions are outlined in Public Clarification EXTP013.
