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How to Use the UAE Excise Tax Calculator

This free calculator gives you an instant excise tax estimate for any product category covered under UAE Federal Decree-Law No. 7 of 2017 — updated with the tiered-volumetric model for sweetened drinks:

  1. Select your product category. Choose from six categories: Tobacco, Energy Drinks, Electronic Smoking Devices, E-Smoking Liquids, Sweetened Drinks, or Carbonated Drinks. Each card shows the applicable rate.
  2. Enter product details. For tobacco and energy drinks: designated retail selling price and quantity. For sweetened drinks: sugar content per 100ml, volume, and product type.
  3. Optionally add import costs. Toggle "Include Customs Duty" and enter CIF value. The calculator layers taxes correctly: excise first, then customs at 5%, then VAT at 5%.
  4. Click "Calculate Excise Tax." Instant breakdown: excise liability, each cost component, and a visual proportion chart for imports.
  5. Expand educational panels below results to understand FTA calculation methodology, registration, filing deadlines, and exemptions.
Ankit's Tip: If dealing with sweetened beverages without a lab certificate, FTA classifies your product as "High Sugar" by default — maximum tax. Get your accredited lab report and MoIAT conformity certificate before registration to potentially save significantly.

Understanding UAE Excise Tax — Complete Guide

Excise tax is one of the UAE's three main tax pillars alongside VAT and corporate tax. Introduced in October 2017, it targets goods harmful to health — primarily tobacco, energy drinks, and sugar-sweetened beverages.

Which Products Are Subject to Excise Tax?

CategoryRateExamples
Tobacco100%Cigarettes, cigars, shisha, heated products
Energy drinks100%Beverages with caffeine, taurine, guarana
E-smoking devices100%Vapes, e-cigarettes, pods, mods
E-smoking liquids100%All vape liquids — nicotine and non-nicotine
Sweetened drinks (High ≥8g/100ml)AED 1.09/LRegular cola, sweetened juice
Sweetened drinks (Moderate 5-8g)AED 0.79/LLight versions, some flavoured water
Sweetened drinks (Low <5g)AED 0.00/LDiet drinks, sparkling water

The Tiered-Volumetric Model for Sweetened Drinks

The most significant change took effect 1 January 2026 under Cabinet Decision No. 197 of 2025. The flat 50% rate was replaced with a per-litre system based on sugar content. Products without valid lab certificates are automatically classified at the highest tier. Use our VAT Calculator for the 5% VAT layer, and the Import Duty Calculator for the full customs stack.

Key change: Carbonated drinks lost separate category status. Plain sparkling water is now fully exempt. Cola and lemonade are taxed under sweetened drinks framework by sugar content.

How Taxes Stack on Imports

StepTaxBaseRate
1Excise TaxExcise price or per-litre100% or AED/L
2Customs DutyCIF value5%
3VATCIF + Duty + Excise5%

Registration and Filing

No threshold — even one import triggers registration via EmaraTax (tax.gov.ae). Returns due by the 15th day after each tax period ends. Cabinet Decision No. 129 of 2025 (effective April 2026) rewards voluntary corrections with reduced penalties.

Exempt Products

Unflavoured sparkling water, 100% natural juice (no added sugar), beverages with 75%+ milk, baby formula, restaurant-prepared drinks in open containers, homemade beverages, and smoking cessation products.

Penalty update: The new framework rewards voluntary error corrections — fix mistakes before FTA audit for significantly reduced penalties.

Frequently Asked Questions — UAE Excise Tax

What is excise tax in the UAE?
Indirect tax on health-harming goods: tobacco, energy drinks, e-smoking devices/liquids, sweetened beverages. Charged once at production, import, or release from designated zone. Rates: 100% for tobacco/energy/e-smoking, per-litre tiered for sweetened drinks. Administered by FTA.
What are the excise tax rates?
Tobacco/energy/e-smoking: 100% (= 50% of retail price). Sweetened drinks: High sugar ≥8g/100ml = AED 1.09/L. Moderate 5-8g = AED 0.79/L. Low <5g = AED 0.00/L. Carbonated drinks now follow same sweetened drinks framework.
How is tobacco excise calculated?
Excise = 50% of designated retail price. A AED 50 retail product has AED 25 excise tax. The retail price already includes the tax, so the pre-tax base is half the retail price.
What changed for sweetened drinks?
Flat 50% rate replaced with per-litre tiered model based on sugar per 100ml. Requires lab certificates and MoIAT conformity certificate. Without valid cert, FTA classifies at highest tier automatically.
Are carbonated drinks still taxed separately?
No. They fall under sweetened drinks framework since January 2026. Plain sparkling water = exempt. Sugary carbonated drinks = taxed by sugar tier.
Who must register?
Any importer, producer, or stockpiler. No minimum threshold — one import triggers it. Register via EmaraTax at tax.gov.ae.
How do taxes stack on imports?
Excise first, then 5% customs on CIF, then 5% VAT on (CIF + customs + excise). Layering makes effective burden very high for tobacco and energy imports.
Which products are exempt?
Unflavoured sparkling water, 100% natural juice, 75%+ milk beverages, baby formula, restaurant open-container drinks, homemade beverages, smoking cessation products.

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