Added Sugar Test for Federal Tax Authority (FTA)registration

Excise tax was introduced across the UAE in 2017. Excise tax is a form of indirect tax levied on specific goods which are typically harmful to human health or the environment. These goods are referred to as “excise goods”. When considering whether a product is an excise good, the following 

Definitions apply:

  • Carbonated drinks include any aerated beverage except for unflavoured aerated water. Also considered to be carbonated drinks are any concentrations, powder, gel, or extracts intended to be made into an aerated beverage.
  • Energy drinks include any beverages which are marketed, or sold as energy drinks and contain stimulant substances that provide mental and physical stimulation, which includes without limitation: caffeine, taurine, ginseng, and guarana. This also includes any substance that has an identical or similar effect as the aforementioned substances. Also considered to be energy drinks are any concentrations, powder, gel, or extracts intended to be made into an energy-enhancing drink.

From 1 December 2019, the excise tax will be levied also on:

  • sweetened drinks.

Rate of excise tax

According to Cabinet Decision No. 52 of 2019 on Excise Goods, Excise Tax Rates and the Methods of Calculating the Excise Price (PDF, 100 KB), the rate of excise tax is as follows:

  • 50 percent on carbonated drinks
  • 100 percent on energy drinks
  • 50 percent on any product with added sugar or other sweeteners.

The purpose behind levying an excise tax

The UAE Government is levying excise tax to reduce the consumption of unhealthy and harmful commodities while also raising revenues for the government that can be spent on beneficial public services. Consumers will need to pay more for goods that are harmful to human health or the environment.

 Role of HITS Lab

HITS Lab performs the testing for quantifying the added sugar content in the product. Customers can upload the test report to FTA Website and apply for tax exemption.

To Learn More About Our Testing Services, Or To Speak With One Of Our Experts,Contact Us Today

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