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Excise Tax Services in Dubai and Abu Dhabi: Registration, Returns and the 2026 Sugar Tax
UAE excise tax applies to tobacco, energy drinks, electronic smoking devices and liquids, and sweetened drinks. There is no registration threshold for importers and producers. Returns are filed monthly. From 1 January 2026, sweetened drinks are taxed per litre by sugar content instead of at 50%. SGA World handles excise registration, returns, pricing reviews and compliance for UAE businesses.
- Ministry of Economy and Tourism approved auditor
- 500+ clients
- Dubai & Abu Dhabi
UAE excise tax at a glance
- Tobacco and energy drinks
- 100%
- E-cigarettes and liquids
- 100%
- Sweetened drinks (from 2026)
- Per litre, by sugar content
- Registration threshold
- None for importers and producers
- Returns
- Monthly
Excise tax is a tax on goods that are harmful to health, charged in the UAE since 2017 under Federal Decree-Law No. 7 of 2017 on Excise Tax, as amended. It applies to tobacco, energy drinks, electronic smoking devices and liquids, and sweetened drinks. From 1 January 2026, sweetened drinks moved from a flat 50% rate to a tiered, sugar-based tax per litre.
SGA World helps importers, producers, stockpilers and warehouse keepers register, calculate and file excise tax correctly, and review prices, stock and designated zone movements.
- Tobacco, energy drinks and e-cigarettes
- 100%
- Sweetened drinks from 2026, by sugar content
- Per litre
- For importers and producers
- No threshold
- Excise tax returns
- Monthly
At a glance
UAE Excise Tax: Key Points
- Who pays: importers, producers, stockpilers and, in some cases, designated zone warehouse keepers.
- No threshold: unlike VAT, there is no turnover threshold; register before the first taxable import or production.
- Rates: 100% on tobacco, energy drinks and electronic smoking devices and liquids.
- Sugar tax: from 1 January 2026, sweetened drinks are taxed per litre depending on sugar per 100 ml.
- Returns: filed monthly on EmaraTax, generally by the 15th day after the period ends.
- Designated zones: excise goods held in designated zones must be kept in FTA-approved designated zone warehouses.
Rates
What Are the UAE Excise Tax Rates?
| Excise goods | Rate |
|---|---|
| Tobacco and tobacco products | 100% of the excise price |
| Energy drinks | 100% of the excise price |
| Electronic smoking devices and tools | 100% of the excise price |
| Liquids used in electronic smoking devices | 100% of the excise price |
| Sweetened drinks with 8 g or more sugar per 100 ml | AED 1.09 per litre (from 1 January 2026) |
| Sweetened drinks with 5 g to under 8 g sugar per 100 ml | AED 0.79 per litre (from 1 January 2026) |
| Sweetened drinks with under 5 g sugar per 100 ml, or only artificial sweeteners | AED 0 (from 1 January 2026) |
Sugar tiers are set by Cabinet Decision No. 197 of 2025. Certain products, such as 100% natural juices with no added sugar and drinks with at least 75% milk, are excluded. Check the FTA guidance for your product.
2026 sugar tax
How Does the 2026 Sugar Tax on Sweetened Drinks Work?
From 1 January 2026, the UAE replaced the flat 50% excise rate on sweetened drinks with a tiered volumetric model based on the total sugar content per 100 ml.
What this means for producers and importers:
- each product needs reliable sugar content data, usually from lab tests or certified specifications;
- the tax is calculated per litre, so pack sizes and concentrates need careful conversion;
- reformulating below 5 g or 8 g per 100 ml can reduce or remove the tax;
- concentrates, powders and syrups are taxed based on the drink they make;
- product registration and price records must be kept up to date with the FTA.
Energy drinks are not part of the tiered model and remain at 100%.
How we work
How Do We Handle Excise Tax for You?
Step
Assess
Confirm whether your products and activities are subject to excise tax.
Step
Register
Register the business and, where needed, products and warehouses on EmaraTax.
Step
Calculate
Work out excise due on imports, production, stock and releases each month.
Step
File and pay
Prepare and file monthly returns and reconcile them to your books.
Step
Review
Check prices, sugar data, stock movements and refunds regularly.
Why SGA World
Why Choose SGA World for Excise Tax Services?
Ministry-approved audit firm
SGA World is a Ministry of Economy and Tourism approved audit firm, so our reports are accepted where it matters.
Audit and tax in one team
Auditors, VAT, corporate tax and transfer pricing specialists work together, so nothing falls between advisers.
Qualified chartered accountants
A team of chartered accountants qualified in India and the UK, focused on UAE rules.
500+ clients
Mainland and free zone companies, from start-ups and SMEs to regional groups.
Listed with major UAE banks
Our audit work is recognised by major UAE banks for facilities and account reviews.
Who must register
Who Must Register for Excise Tax in the UAE?
You must register for excise tax before you:
- import excise goods into the UAE;
- produce excise goods in the UAE for release for consumption;
- stockpile excise goods in certain circumstances;
- operate a designated zone warehouse holding excise goods, as a warehouse keeper.
There is no minimum turnover. A single import of excise goods can require registration. Businesses that only buy excise goods locally, on which excise has already been paid, usually do not need to register.
Worked example
Example: Calculating Excise on Imported Soft Drinks in 2026
An importer brings in 50,000 litres of a soft drink with 9 g of sugar per 100 ml and 20,000 litres of a lightly sweetened drink with 6 g per 100 ml.
- Drink A: 50,000 litres x AED 1.09 = AED 54,500 excise.
- Drink B: 20,000 litres x AED 0.79 = AED 15,800 excise.
- A zero-sugar version sweetened only with artificial sweeteners would carry no excise.
The importer keeps lab reports for each product to support the tier, registers the products where required and files the monthly excise return. VAT is then charged on the selling price including excise.
What to prepare
What Do We Need for Excise Tax Work?
Products
Product list, ingredients and sugar content certificates.
Imports
Customs declarations and supplier invoices.
Production
Production and release records for local manufacturers.
Stock
Stock movements and warehouse records.
Registrations
Excise and VAT registration details.
Prices
Retail selling prices for products taxed by value.
Fees and timing
What Affects the Cost of Excise Tax Services?
Fees depend on the number of products, import and production volumes, designated zone warehouses, the need for sugar-tier reviews and whether we file monthly returns for you. We agree a fixed monthly or project fee.
Avoid problems
Common Excise Tax Mistakes
Importing before registering
Penalties and goods held at customs
Using the old 50% rate for sweetened drinks after 2025
Wrong tax declared
No sugar data for each product
Tier cannot be supported
Excise goods outside an approved designated zone warehouse
Excise becomes due
Returns that do not match stock records
Assessments and penalties
Missing the monthly filing date
Late filing and payment penalties
Excise desk
Get Your Excise Tax Right Under the 2026 Rules
Tell us your products, how you import or produce them and where you store them. We will confirm what you owe and handle the filings.
We handle
- Excise registration
- Monthly excise returns
- Sugar tax tier reviews
- Designated zone warehouses
- Refunds and FTA queries
Location: Dubai & Abu Dhabi
Talk to Our Team
Our offices in Business Bay, Dubai and Al Bateen, Abu Dhabi support clients across the UAE.
Dubai
Office 1923, The Exchange Tower, Business Bay, Dubai
Abu Dhabi
Khalidiya Towers M-B6, W10, Al Bateen, Al Khalidiyah, Abu Dhabi
Talk to an auditor
Tell us your company type, jurisdiction and deadline. We will confirm the scope, timeline and fee.
- WhatsApp us+971 50 627 3556
- Call us+971 4 570 1795
- Email us[email protected]
- Book an appointmentChoose a time that suits you
Prefer a form? Send us a detailed enquiry.
Who prepared this page
Written and reviewed by SGA World's audit and tax team
This guide is prepared by chartered accountants at SGA World Auditing Accounting L.L.C S.P.C in Business Bay, Dubai, a Ministry of Economy and Tourism approved audit firm, and checked against Federal Tax Authority legislation and guidance. It is reviewed whenever the rules change.
- Last reviewed 12 October 2026
- Chartered accountants from India and the UK
- FTA representation through Saif Chartered Accountants
Have a question about your company?
Tell us your activity, jurisdiction and deadline. A chartered accountant will reply.
Ask an expertFrequently asked questions
UAE Excise Tax – FAQs
Short answers to the questions UAE businesses ask us most. Still unsure?
Talk to our team01.Which goods are subject to excise tax in the UAE?
Tobacco and tobacco products, energy drinks, electronic smoking devices and liquids, and sweetened drinks.
02.Is there a registration threshold for excise tax?
No. Importers and producers of excise goods must register before their first taxable activity, whatever their turnover.
03.How is the sugar tax calculated from 2026?
From 1 January 2026, sweetened drinks are taxed per litre by sugar content: AED 1.09 per litre at 8 g or more per 100 ml, AED 0.79 per litre at 5 g to under 8 g, and nil below 5 g or with only artificial sweeteners.
04.Are energy drinks part of the new sugar tax?
No. Energy drinks remain taxed at 100% of the excise price.
05.How often are excise tax returns filed?
Monthly, on EmaraTax, generally by the 15th day after the end of each tax period.
06.Do excise goods in a free zone pay excise tax?
Excise goods held in a designated zone can be suspended from excise tax only if kept in an FTA-approved designated zone warehouse. Otherwise excise tax becomes due.
07.When must excise tax returns be filed?
Monthly, generally by the 15th day after the end of each tax period, through EmaraTax.
08.Is VAT charged on top of excise tax?
Yes. VAT applies to the price of excise goods, which includes the excise tax.
09.Do 100% fruit juices pay excise?
100% natural juices with no added sugar or sweeteners are generally excluded from the sweetened drinks tax. Check FTA guidance for your product.
10.Do I need lab tests for sugar content?
Reliable evidence of sugar per 100 ml, such as lab reports or certified specifications, is needed to support the tier.
11.Can excise tax be refunded?
In certain cases, such as exports or goods used as inputs, excise refunds may be available, subject to FTA conditions.
12.Who pays excise on goods bought locally?
Usually the importer or producer has already paid it. Local buyers do not normally need to register.
References:Federal Tax Authority: excise tax · UAE Ministry of Finance — reviewed 14 October 2026
