UAE Excise Tax on Sweetened Drinks from 2026: The Sugar-Based Rates

Since 1 January 2026 sweetened drinks are taxed per litre by sugar content, not at 50% of the price. The three bands, sugar certificates, worked examples, Designated Zones and what stays off the return.

Excise Tax targets goods considered harmful to health. Tobacco, electronic smoking devices and liquids, and energy drinks are taxed at 100% of value. Since 1 January 2026, sweetened drinks are no longer taxed at 50% of the price: they are taxed per litre according to their sugar content, and carbonated drinks are no longer a separate category.

The three bands

Sugar is measured per 100 ml:

• 8 g or more: AED 1.09 per litre (high sugar).
• 5 g to under 8 g: AED 0.79 per litre (moderate sugar).
• Under 5 g, or sweetened only with artificial sweeteners: AED 0 per litre, but still declared on the return.
• Energy drinks stay at 100% of value, outside the sugar model.

No certificate, no discount

Each drink needs a sugar conformity certificate. A drink without one is taxed as high sugar, at AED 1.09 per litre, until a lab report shows a lower sugar content.

Worked examples

• Union Beverages’ regular cola has 10.6 g of sugar per 100 ml, the high band. 40,000 litres × AED 1.09 = AED 43,600.
• Its zero-sugar cola, sweetened only artificially, is declared at AED 0.
• Oasis Juice’s mango drink has 6.2 g per 100 ml, the moderate band. 30,000 litres × AED 0.79 = AED 23,700.
• Oasis Juice also bottles 100% orange juice with no added sugar. Drinks with only natural sugar are not excise goods, so it stays off the return.

When the tax is due

Goods produced outside a Designated Zone are taxed when they are produced. Goods kept inside a Designated Zone are taxed only when they are released for consumption in the UAE. Excise returns are monthly and due by the 15th of the following month. There is no registration threshold: producing, importing or stockpiling excise goods is enough to need an Excise registration.

Chapters 7 and 8 of the UAE TaxLab course take you through Union Beverages and Oasis Juice on the simulator’s Excise return.

Frequently asked questions

Are soft drinks still taxed at 50%? No. Since 1 January 2026, sweetened drinks are taxed per litre by sugar content.

Do diet drinks pay Excise Tax? Drinks sweetened only artificially fall in the AED 0 band but are still declared.

Is fruit juice with no added sugar taxed? Drinks with only natural sugar are not excise goods.

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