Calculate UAE excise tax — 100% on tobacco, energy drinks and vaping products, and the new 2026 tiered volumetric tax on sweetened beverages by sugar content, with VAT on top.
Total excise tax
AED 1.09 / litre · 8 g sugar / 100 ml or more
From 1 January 2026 sweetened beverages are taxed by sugar content per litre, not at a flat 50%. VAT (5%) then applies on the excise-inclusive price. Enter a pre-tax selling price to see the full consumer total.
Excise tax (Federal Decree-Law No. 7 of 2017) targets goods harmful to health or the environment. The current rates are:
The 2026 change replaced the old flat 50% rate on sweetened and carbonated drinks with a sugar-based, per-litre model, so lower-sugar drinks attract less (or zero) tax. VAT at 5% then applies on the excise-inclusive price. After excise, reconcile your VAT with the VAT calculator.
Source: UAE Ministry of Finance "Tiered Volumetric Model" announcement, 12 December 2025 (mof.gov.ae); UAE Federal Tax Authority clarification, 30 October 2025 (tax.gov.ae); UAE Government portal excise-tax page (u.ae). Verified as of 20 June 2026.
Tobacco and tobacco products, electronic smoking devices and the liquids used in them, and energy drinks are taxed at 100% of the excise price. From 1 January 2026 sweetened beverages are taxed by a tiered volumetric rate per litre based on sugar content.
It is a per-litre tax by total sugar content: AED 0 per litre below 5g of sugar per 100ml, AED 0.79 per litre for 5 to under 8g per 100ml, and AED 1.09 per litre for 8g per 100ml or more. This replaced the former flat 50% rate.
From 1 January 2026 carbonated drinks are no longer a separate excise category. Sweetened carbonated drinks now fall under the tiered volumetric model based on sugar content, while energy drinks remain at 100%.
For percentage-based goods, the taxable base is the excise price — the higher of the price published in the FTA Standard Price List or the designated retail sales price excluding the excise tax. Enter that figure as the excise price.
Yes. The 5% VAT is calculated on the price including excise tax, so the calculator shows both the excise amount and the VAT-inclusive consumer total.
Disclaimer: This calculator is informational only and not tax advice. Excise registration, conformity certification and the precise excise price for each product follow FTA rules. Verify your position with the Federal Tax Authority or a qualified UAE tax adviser. See our full disclaimer.