29 Sep 2026
Beverage importers and manufacturers sit squarely inside the excise tax beverage UAE regime the moment they import, produce, or release a taxable drink from a Designated Zone, there is no turnover threshold. Energy drinks are taxed at 100% of the excise price, while carbonated and other sweetened drinks are taxed under a tiered, sugar-based rate since 1 January 2026: AED 1.09 per litre at 8g of sugar or more per 100ml, AED 0.79 per litre between 5g and under 8g, and AED 0 below 5g or for artificially sweetened drinks. Registration through EmaraTax is due within 30 days of first carrying out (or intending to carry out) the taxable activity, and returns are filed monthly.
Beverage businesses sit at the center of the UAE's excise tax beverage regime, since energy drinks, and sweetened beverages were among the first products brought under Federal Decree-Law No. 7 of 2017 on Excise Tax. Importers and manufacturers face registration duties, tax on every unit crossing the border or leaving a factory, and monthly filing obligations that never pause for seasonal demand. AMCA regularly guides beverage businesses through excise tax registration, classification, and ongoing compliance so nothing slips through the cracks.
What Is Excise Tax and How Does It Apply to Beverage Businesses?
Excise Tax is an indirect tax charged on goods deemed harmful to public health or the environment including certain beverages subject to the sugar tax in the UAE. For beverage businesses, it applies at the point of import, production, or release from a Designated Zone, not at the point of retail sale. The Federal Tax Authority (FTA) administers the tax through its EmaraTax platform, and the obligation attaches the moment a taxable beverage enters the supply chain, before a single can or bottle reaches a shelf.
Which Beverage Businesses Must Comply with UAE Excise Tax?
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Importers bringing energy drinks or sweetened and carbonated drinks into the UAE must understand their obligations under excise tax for importers in the UAE.
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Local manufacturers and bottlers producing taxable beverages must meet excise tax requirements for manufacturers in the UAE, including registration, classification, reporting, and payment.
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Warehouse keepers overseeing Designated Zones that store excise beverages.
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Distributors releasing beverages from a Designated Zone into free circulation.
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Businesses stockpiling untaxed beverage inventory when new rules or rates take effect.
This is where excise tax importers UAE-wide most often trip up: treating registration as a formality to sort out after the first shipment clears, rather than a prerequisite to it.
Excise Tax Registration Requirements for Importers and Manufacturers
There is no turnover threshold for beverage excise tax, unlike VAT, a single import shipment or production run is enough to trigger the obligation. Registration must be completed through EmaraTax within 30 days from the date the business first engages or intends to engage in a taxable activity, in line with standard FTA guidelines. Making early preparation an important part of beverage tax compliance in the UAE. Businesses should prepare:
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Valid trade licence copy
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Passport and Emirates ID of the owner or authorised signatory
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Customs registration number (for importers)
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Product SKUs, brand names, and customs tariff codes
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Details of any Designated Zone or warehouse used
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Bank account validation letter (IBAN)
Excise Goods Classification and Tax Rates for Beverages
Correct classification determines whether excise tax applies at all and at what rate. Since 1 January 2026, the excise tax on beverages 2026 includes a tiered, sugar-based structure for qualifying sweetened beverages.
Important: Sweetened carbonated drinks now follow the tiered, sugar-based volumetric Excise Tax model rather than the previous flat 50% rate. Flavoured sparkling water containing added sugar or sweeteners may also fall within the sweetened drinks category rather than being treated as exempt water, depending on its composition and the applicable FTA classification.