100%
Tobacco products
All tobacco and tobacco products are subject to excise tax at 100% of the excise price.
Excise tax · UAE
Excise tax in the UAE, explained clearly
If your business deals in tobacco, energy drinks, electronic smoking devices, e-liquids, or sweetened and carbonated drinks, excise tax applies. This guide covers the goods in scope, the 100% categories, the 2026 tiered model for drinks, and how monthly filing works.
What is excise tax?
Excise tax is an indirect tax the UAE applies to a defined list of goods considered harmful to health or the environment. It is charged when goods are imported, produced, or released for consumption in the UAE, and is administered by the Federal Tax Authority through the EmaraTax portal.
The goods in scope fall into two treatments: a group of categories taxed at 100% of the excise price, and sweetened and carbonated drinks, which from 1 January 2026 are charged under a tiered per-litre model based on sugar content.
This guide is informational. When you are ready to register and file, see our excise tax services.
The categories taxed at 100%
Four categories are charged at 100% of the excise price.
100%
Energy drinks
Energy drinks are taxed at 100%. They are a distinct category from ordinary sweetened and carbonated drinks.
100%
Electronic smoking devices
Electronic smoking devices and the tools used with them are taxed at 100%.
100%
Liquids for e-smoking devices
Liquids used in electronic smoking devices (e-liquids) are taxed at 100%.
Sweetened & carbonated drinks: the 2026 tiered model
From 1 January 2026, sweetened and carbonated drinks are no longer taxed as a flat percentage. Instead the charge is volumetric — an amount per litre — set by how many grams of sugar the drink contains per 100 ml. Reformulating a drink to a lower sugar band can move it to a lower tier or make it exempt.
Below 5 g / 100 ml
Drinks with less than 5 grams of sugar per 100 ml, or sweetened only with artificial sweeteners, fall outside the charge.
5 g to under 8 g / 100 ml
Drinks with at least 5 grams but less than 8 grams of sugar per 100 ml are charged AED 0.79 per litre.
8 g / 100 ml and above
Drinks with 8 grams or more of sugar per 100 ml are charged AED 1.09 per litre — the top tier.
No approved sugar report
Where a product has no approved sugar-conformity report, it is taxed at the highest tier by default.
The key operational point: keep an approved sugar-conformity report for each product. Without one, the product defaults to the highest tier regardless of its actual sugar content.
Registration and monthly filing
Excise tax is a monthly obligation. The return and payment are generally due by the 15th day of the month following each tax period, and everything is handled on EmaraTax:
- Register for excise tax with the FTA on EmaraTax if you import, produce, or stockpile excise goods.
- Classify every product: the 100% categories, and the correct sugar tier for sweetened and carbonated drinks.
- Prepare the excise return each month from your import, production, and stock records.
- File the return and pay through EmaraTax, generally by the 15th day of the following month.
- Keep records of quantities and treatments so declared figures are supported on review.
Excise sits alongside the UAE's other indirect tax, VAT. If VAT applies to your business too, our UAE VAT guide explains how that regime works.
How AIMuhaseb helps
Excise classified correctly, filed on time
AIMuhaseb keeps your product classifications and stock movements reconciled to your books, so every excise good — the 100% categories and each drinks tier — is treated correctly and your monthly return is supported if the FTA reviews it. A UAE specialist handles registration and files each period on EmaraTax.
Excise registration on EmaraTax
Product-level tier mapping
Monthly return preparation
Records that support the figures
FAQ
Excise tax questions, answered
What is excise tax in the UAE?
Excise tax is an indirect tax the UAE levies on specific goods considered harmful to health or the environment. It applies at the point goods are imported, produced, or released for consumption, and is administered by the Federal Tax Authority through the EmaraTax portal. The goods in scope are tobacco products, energy drinks, electronic smoking devices, liquids for those devices, and sweetened and carbonated drinks.
Which goods are taxed at 100%?
Four categories are taxed at 100% of the excise price: tobacco and tobacco products, energy drinks, electronic smoking devices, and the liquids used in those devices. Sweetened and carbonated drinks are treated differently — from 1 January 2026 they are charged under a tiered volumetric model rather than a flat percentage.
How are sweetened and carbonated drinks taxed from 2026?
From 1 January 2026 these drinks are charged per litre according to their sugar content per 100 ml. Drinks below 5 g of sugar per 100 ml (or sweetened only with artificial sweeteners) are exempt. Drinks with 5 g up to under 8 g per 100 ml are charged AED 0.79 per litre. Drinks with 8 g or more per 100 ml are charged AED 1.09 per litre. If a product has no approved sugar-conformity report, it is taxed at the highest tier.
Why did the drinks model change?
The tiered volumetric model links the tax to how much sugar a drink actually contains and to its volume, rather than applying one flat rate to every sweetened drink. In practice this means lower-sugar and reformulated products can fall into a lower tier or become exempt, while high-sugar products sit at the top tier. Producers and importers need an approved sugar report for each product to be taxed on its actual content rather than defaulting to the highest tier.
How often is excise tax filed?
Excise tax is filed monthly through the FTA EmaraTax portal, with the return and payment generally due by the 15th day of the month following the tax period. Registration, returns, and payments are all handled on EmaraTax.
Who has to register for excise tax?
Businesses that import, produce, or stockpile excise goods in the UAE, and warehouse keepers, generally must register for excise tax with the FTA. Registration is completed on EmaraTax before excise activity begins, and product details are recorded so returns can be filed accurately.
Related: Excise tax services ·
UAE VAT guide
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