Excise tax applies to specified goods under its own rules. From 1 January 2026, the UAE introduced a tiered volumetric model for sweetened drinks. A blanket statement that all sweetened drinks attract 50% excise is no longer suitable. Confirm the product category, relevant date and current calculation method.
Practical review checklist
- Prepare a product list with ingredients, pack sizes and import or production activity.
- Check classification and any required product registration.
- Review excise and VAT separately when reconciling transactions.
Check the rules for your transaction
Use the current official FTA guidance and legislation and VAT public clarifications. This introductory guide does not cover every exception. Confirm the requirements for your business and the period concerned.
Need help reviewing your records?
Explore BWMC VAT consultancy or contact the team with the transaction type, reporting period and issue you need to resolve.