New UAE Sugar Tax: Sweetened Drinks Need Certificates or Face Higher Excise

Dubai:
From January 1, 2026, companies dealing in sweetened beverages across the UAE will face a clear choice: certify their products’ sugar content or pay the highest possible excise tax. The Federal Tax Authority (FTA) confirmed that producers, importers and stockpilers must now obtain a mandatory sugar conformity certificate for all sweetened drinks.

The requirement applies under the UAE’s revised excise tax framework, which links taxation directly to sugar levels. Businesses must secure the Emirates Conformity Certificate for Sugar and Sweeteners Content in Beverages (for Excise Tax purposes) through the Ministry of Industry and Advanced Technology’s online portal.

To qualify, companies must first conduct laboratory testing at UAE-accredited facilities recognised by the National Accreditation Department or the Emirates International Accreditation Centre. Once issued, the certificate must be uploaded to the FTA’s EmaraTax system when registering or updating beverage products.

No certificate, higher tax

The FTA warned that beverages submitted without a valid certificate will automatically be classified as high-sugar products, regardless of their actual formulation. Until proper laboratory proof is provided, such drinks will attract the highest excise rate, increasing tax liabilities and potentially delaying product approvals or imports.

What changes from January 2026

The update coincides with the rollout of the UAE’s tiered-volumetric excise tax model for sweetened drinks. Under the new system, excise duty will be calculated per litre, based on sugar or sweetener content per 100 ml, rather than a flat rate.

Introduced under Cabinet Decision No. 197 of 2025, the model divides beverages into four categories:

• High sugar: 8g or more per 100 ml (Dh1.09 per litre)

• Moderate sugar: 5g to under 8g (Dh0.79 per litre)

• Low sugar: under 5g (no excise)

• Artificially sweetened: no or minimal sugar (no excise)

Energy drinks remain outside this model and will continue to attract 100 per cent excise tax.

Why this matters for businesses

The FTA says the policy is designed to reduce sugar consumption, encourage healthier product reformulation and give consumers clearer price signals. For businesses, however, it also raises compliance stakes.

Companies entering or expanding the UAE market - including those exploring business setup in dubai - will need to factor in product testing, certification timelines and excise classification much earlier in their planning. Failure to do so could result in higher costs, supply disruptions or suspended registrations.

The authority has urged businesses to begin preparations immediately by testing products, applying for conformity certificates and updating records on EmaraTax, warning that non-compliance could prove costly once the new rules take effect.