Calculate excise tax liability on tobacco, energy drinks, electronic smoking devices, and sweetened beverages — including the new 2026 tiered-volumetric sugar model.
Tobacco Products — 100% Excise Rate
Under Federal Decree-Law No. 7 of 2017, any business that produces, imports, or stockpiles excise goods in the UAE must register with the Federal Tax Authority (FTA) before beginning these activities. There is no registration threshold — even a single import triggers the requirement.
Registration categories include: importers, domestic producers, businesses stockpiling excise goods, and warehouse keepers operating FTA-designated zones. Registration is done via the EmaraTax portal at tax.gov.ae.
Excise tax returns must be filed by the 15th day following the end of each tax period. Late filing or non-compliance can result in penalties under Cabinet Decision No. 129 of 2025 (effective April 2026), which harmonises excise penalties with the broader UAE tax framework.
| Obligation | Deadline |
|---|---|
| Register before first excise activity | Before import/production |
| File excise tax return | 15th of following month |
| Pay excise tax due | 15th of following month |
| Maintain records | 5 years minimum |
A Designated Zone is an FTA-approved fenced and supervised area treated as outside the UAE for excise tax purposes. Excise goods can be stored in these zones without triggering tax liability until they are released for domestic consumption.
Key exemptions from excise tax include:
| Exempt Product | Condition |
|---|---|
| Unflavoured sparkling water | No sugar, flavour, or sweetener added |
| 100% natural fruit/vegetable juice | No added sugar or sweeteners whatsoever |
| Beverages with ≥75% milk | Milk or milk substitute content verified |
| Baby formula | Designed for infants/special dietary needs |
| Restaurant-prepared beverages | Served in open containers, not sealed |
| Personal/non-commercial beverages | Prepared by individuals at home |
Refunds are available only for exported excise goods (with proper documentation) and goods destroyed under FTA supervision. No refund applies to locally sold excise goods.
Free PDF covering excise tax registration steps, filing deadlines, penalty rates, and the complete 2026 sweetened drinks framework — delivered instantly to your inbox.
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Disclaimer: This calculator provides estimates based on published UAE Federal Tax Authority (FTA) rates under Cabinet Decision No. 197 of 2025 and Federal Decree-Law No. 7 of 2017. Excise tax calculations for sweetened drinks use the tiered-volumetric model effective 1 January 2026. Results are for informational purposes only and do not constitute tax advice. Actual excise tax liability may vary based on FTA classification, lab testing results, and specific product registration. Always consult a qualified tax advisor or the FTA directly (tax.gov.ae) for binding compliance guidance. DXBIFY is not a tax consultancy and accepts no liability for decisions made based on these calculations.