Commencement of the Implementation of the New Excise Tax Mechanism on Sweetened Drinks Based on the "Tiered-Volumetric Model" effective from 1 January 2026
Federal Tax Authority underscores requirement to submit approved conformity certificates to avoid classification of the product as high-sugar sweetened drinks Abu Dhabi, 29 December 2025: Starting 1 January 2026, the new mechanism for calculating Excise Tax on Sweetened Drinks based on the "Tiered-Volumetric Model" will come into force in the UAE. Under this model, the amount of tax imposed per litre of a sweetened drink is linked to the total quantity of sugar and other sweeteners per 100 ml of the drink. This is in accordance with Cabinet Decision No. 197 of 2025 on Excise Goods, Tax Rates or Amounts Imposed on Excise Goods, an
Federal Tax Authority underscores requirement to submit approved conformity certificates to avoid classification of the product as high-sugar sweetened drinks
Abu Dhabi, 29 December 2025: Starting 1 January 2026, the new mechanism for calculating Excise Tax on Sweetened Drinks based on the "Tiered-Volumetric Model" will come into force in the UAE. Under this model, the amount of tax imposed per litre of a sweetened drink is linked to the total quantity of sugar and other sweeteners per 100 ml of the drink. This is in accordance with Cabinet Decision No. 197 of 2025 on Excise Goods, Tax Rates or Amounts Imposed on Excise Goods, an
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