The UAE Federal Tax Authority has updated its guidance on excise tax, publishing ETGTP2 to cover products subject to excise duties and how general rules apply. The guide includes revised tax rates, new classifications for beverages, and the introduction of a tiered-volumetric model for sweetened drinks.
The UAE Federal Tax Authority (FTA) has released an updated guide, Taxable Persons Guide for Excise Tax (Excise Goods) – ETGTP2 on 10 February 2026.
This guide is the second in a two-part series for taxable persons on excise tax in the UAE:
ETGTP1 – General Legislative Provisions
ETGTP1 covers the general legislative framework for excise goods, providing a basis for understanding how excise tax applies across different businesses. It serves as the main reference for Excise Tax in the UAE and offers:
- An overview of the key Excise Tax rules and compliance procedures.
- Guidance on common questions businesses may encounter.
- References to more specialised publications and their sources.
Not all sections of the guide apply to every business, and it is not expected that all businesses will need to read the entire document.
ETGTP2 – Excise Goods and Application of Rules
ETGTP2 focuses on products subject to excise tax and explains how the general provisions apply. The guide provides:
- Definitions of excise goods, exclusions, and key considerations for each type of product.
- Guidance on calculating excise tax under the Ad Valorem Model and the Tiered-Volumetric Model.
As with ETGTP1, not every section is relevant to all businesses.
Key Updates in ETGTP2
- Revised list of excise goods and applicable tax rates.
- Updated classification rules for sweetened, carbonated, and energy drinks.
- Introduction of the tiered-volumetric model for sweetened drinks.
- Amendments to deductible tax provisions.
- New footnotes citing relevant legislation.
