FTA Highlights Mandatory Conformity Certificates Under New Tiered Excise Tax on Sweetened Drinks (Effective 1 January 2026)
The Federal Tax Authority made a key announcement on 29 December 2025. Released at year-end, the update outlines significant changes to the excise tax framework for sweetened drinks and sets the compliance direction for 2026.
The most notable change is the introduction of a Tiered Volumetric Model for excise tax. This model replaces the previous fixed-rate calculation method for sweetened drinks.
Under the new approach, excise tax will be linked to sugar content. Drinks with higher sugar levels will attract higher tax, while those with lower sugar content will be taxed at reduced rates.
The model applies to all sweetened beverages sold in the UAE. Defined sugar thresholds bring greater predictability to tax calculations and place increased focus on product composition rather than volume alone.
This new model applies to all sweetened beverages sold in the UAE.
Clear sugar thresholds make the tax predictable. At the same time, it nudges manufacturers to review and, if needed, adjust their formulas.
The change signals a broader shift; tax policy is now tied to product composition, not just volume.
Key Amendments
The Federal Tax Authority has confirmed that the changes are official.
Cabinet Decision No. 197 of 2025 provides the legal basis, setting out updated rules for excise goods, including applicable tax rates and calculation methods. The decision replaces earlier regulations and aligns with amendments to Federal Decree-Law No. 7 of 2025 on Excise Tax.
Under this framework, excise tax on sweetened drinks will be calculated using the tiered volumetric model. The tax rate per litre will reflect the sugar and other sweetener content per 100 ml. The flat-rate system is no longer applicable.
From 2026 onwards, producers, importers, and stockpilers are required to obtain and submit conformity certificates when registering or updating product details through EmaraTax. Products without approved certificates will be classified by default as high-sugar sweetened drinks.
Mandatory Emirates Conformity Certificate
Producers, importers, and stockpilers of sweetened drinks are required to obtain an Emirates Conformity Certificate. The certificate is issued following testing by UAE-accredited laboratories to confirm sugar and sweetener content.
Certificates must be submitted through the EmaraTax portal. Where a certificate is not submitted, the product will be treated as a high-sugar sweetened drink and subject to the highest excise tax rate.
This requirement supports accurate tax calculation and reinforces transparency around product composition. It also provides the regulatory basis for enforcing the new Tiered Volumetric Model.
Excise Tax Categories for Sweetened Drinks
- High-sugar sweetened drinks: Products with the highest sugar content, subject to the highest excise tax rate.
- Moderate-sugar sweetened drinks: Products with moderate sugar levels, taxed at a reduced rate compared to the high-sugar tier.
- Low-sugar sweetened drinks: Products with minimal sugar content, subject to the lowest excise tax rate.
- Artificially sweetened drinks: Drinks containing only artificial sweeteners, or artificial sweeteners with less than 5g of sugar or other sweeteners per 100 ml, are subject to excise tax at zero dirhams per litre.
These categories provide a clear framework for product classification and tax application, while encouraging lower sugar formulations.
Impact on Specific Beverage Types
Carbonated drinks will be taxed based on their actual sugar content rather than their category. Accurate measurement and reporting of sugar levels will therefore be required.
Energy drinks remain subject to excise tax at 100% of the excise price and are excluded from the tiered volumetric model.
For concentrates, syrups, and powdered drinks, additional disclosures apply. Businesses must provide serving size information and dilution instructions so that sugar content reflects the product as consumed.
Compliance Requirements Under the Tiered Excise Tax
Businesses involved in the production, import, or stockpiling of sweetened drinks will need to assess product formulations and sugar classifications under the tiered model.
Accurate product classification is essential, as errors may result in higher tax exposure or incorrect treatment under the excise framework.
Conformity certificate testing must be completed through UAE-accredited laboratories, with validated results and supporting documentation submitted through EmaraTax.
Product registrations on EmaraTax will also need to reflect the new requirements to ensure alignment with the updated excise rules.
Conclusion
The introduction of the Tiered Volumetric Model marks a structural change in how excise tax on sweetened drinks is calculated in the UAE.
Compliance will depend on accurate product classification, valid conformity certification, and correct registration through EmaraTax.
With the new rules businesses must ensure their products and documentation align with the updated excise framework.
References
- Accreditation of Conformity Assessment Bodies – MOIAT.
https://moiat.gov.ae/en/services/accreditation-of-conformity-assessment-bodies. - Authority, Federal Tax. ‘Federal Tax Authority Underscores Requirement to Submit Approved’. Federal Tax Authority – Federal Tax Authority Underscores Requirement To S …,
https://tax.gov.ae//en/media.centre/news/federal.tax.authority.underscores.requirement.to.submit.approved.conformity.certificates.to.avoid.classification.of.the.product.as.highsugar.sweetened.drink.aspx. - Emara Tax.
https://u.ae/en/information-and-services/finance-and-investment/taxation/emaratax. - Excise Goods, Tax Rates or Amounts Imposed on Excise Goods, and the Methods of Calculating the Excise Price Cabinet Decision No. 197 of 2025 – Issued 27 Nov 2025 (Effective from 1 Jan 2026).
https://tax.gov.ae/Datafolder/Files/Legislation/2025/Cabinet-Decision-No-197-of-2025.pdf. - Excise Tax .
https://mof.gov.ae/wp-content/uploads/2025/10/Federal-Decree-Law-No.-7-of-2017-on-Excise-Tax-and-its-amendments.pdf. - Issue UAE Certificates of Conformity for Products Subject to Technical Regulations
.
https://moiat.gov.ae/en/services/issue-conformity-certificates-for-regulated-products. - ‘New Excise Tax from January 1: UAE Classifies Four Categories of Sweetened Products’. Khaleej Times,
https://www.khaleejtimes.com/uae/new-excise-tax-january-1-2026-four-categories-sweetened-products.
