How to use the calculator
- Choose the kind of excise good.
- For tobacco, vaping products and energy drinks, enter the retail price of one unit without VAT, the FTA list price if there is one, and the number of units. For e-liquids, add the millilitres in one unit.
- For sweetened drinks, enter the grams of sugar and other sweeteners per 100 mL and the volume in litres, and say whether the FTA has accepted a laboratory report.
- Leave the date empty for today's rules, or enter the date of the import or release to apply the rules in force then.
How it is calculated
Tobacco, vaping products, energy drinks: excise tax = 100% × Excise Price × units
Excise Price = the higher of the FTA list price and (retail price excluding VAT ÷ 2)
E-liquids from 1 September 2026: Excise Price is at least AED 1 × mL per unit
Sweetened drinks: excise tax = amount for the sugar band × litres
The tax on one unit is rounded to 4 decimal places of the dirham and the total to the nearest fils, as the decision sets. For sweetened drinks the amount per litre is fixed, so only the total is rounded.
The rates and amounts
| Excise good | Tax |
|---|---|
| Tobacco and tobacco products | 100% |
| Electronic smoking devices and tools, and the liquids used in them | 100%; minimum Excise Price AED 1/mL for e-liquids |
| Energy drinks | 100% |
| Sweetened drinks, 8 g or more of sugar per 100 mL | AED 1.09 per litre |
| Sweetened drinks, 5 g to under 8 g per 100 mL | AED 0.79 per litre |
| Sweetened drinks, under 5 g per 100 mL or artificial sweeteners only | AED 0 per litre |
Sources: Cabinet Decision No. 197 of 2025 on Excise Goods, Tax Rates or Amounts Imposed on Excise Goods, and the Methods of Calculating the Excise Price (unofficial translation), Article 10, Federal Tax Authority; Ministry of Finance Announces Decision introduces a Minimum Excise Price for Liquids Used in Electronic Smoking Devices Effective 1 September 2026 (Cabinet Decision No. 137 of 2026), Ministry of Finance. Checked .
What is an excise good
5 categories of excise goods
From 1 January 2026, UAE Excise Tax applies to five categories of excise goods: tobacco and tobacco products; liquids used in electronic smoking devices; electronic smoking devices and tools; energy drinks; and sweetened drinks. Carbonated drinks are no longer a separate category.
- Applies to
- Excise goods under Federal Decree-Law No. 7 of 2017 on Excise Tax
- Source
- Cabinet Decision No. 197 of 2025 on Excise Goods, Tax Rates or Amounts Imposed on Excise Goods, and the Methods of Calculating the Excise Price (unofficial translation), Article 2, Federal Tax Authority
- Checked
The Excise Price
Higher of the FTA list price or the retail price less the tax in it (half the price at 100%)
The Excise Price is the higher of the price the FTA publishes for the good in its standard price list, if there is one, and the designated retail sales price less the Excise Tax included in it; for goods taxed at 100% of the Excise Price, the tax included is taken as half of the designated retail sales price.
- Applies to
- Excise goods taxed at a percentage of the Excise Price (tobacco products, electronic smoking devices and liquids, energy drinks)
- Source
- Cabinet Decision No. 197 of 2025 on Excise Goods, Tax Rates or Amounts Imposed on Excise Goods, and the Methods of Calculating the Excise Price (unofficial translation), Article 11, Federal Tax Authority
- Checked
The retail price it starts from
Higher of the declared recommended retail price and the market average, both excluding VAT
The designated retail sales price is the higher of the recommended retail selling price that the importer or producer declares and fixes to the goods, after deducting VAT, and the average retail selling price of the goods in the market, after deducting VAT; higher prices charged for consumption inside hotels, restaurants or similar premises do not count.
- Applies to
- Excise goods taxed on the Excise Price
- Source
- Cabinet Decision No. 197 of 2025 on Excise Goods, Tax Rates or Amounts Imposed on Excise Goods, and the Methods of Calculating the Excise Price (unofficial translation), Article 12, Federal Tax Authority
- Checked
Sweetened drinks without a laboratory report
Highest sugar category without an accepted laboratory report
A person must give the FTA a laboratory report it accepts showing the quantity of sugar and other sweeteners in a sweetened drink and whether it contains artificial sweeteners; without one, the drink is taxed in the category with the highest sugar content until a report shows that it belongs in another category.
- Applies to
- Sweetened drinks
- Source
- Cabinet Decision No. 197 of 2025 on Excise Goods, Tax Rates or Amounts Imposed on Excise Goods, and the Methods of Calculating the Excise Price (unofficial translation), Article 13, Federal Tax Authority
- Checked
Rounding
4 decimal places per good; nearest fils on returns
Where Excise Tax works out to a fraction of a fils, the tax on each good is rounded to four decimal places of the dirham when the good is registered with the FTA, and the tax due on periodic returns is rounded to the nearest fils, under the rules of arithmetic rounding.
- Applies to
- Excise Tax on excise goods
- Source
- Cabinet Decision No. 197 of 2025 on Excise Goods, Tax Rates or Amounts Imposed on Excise Goods, and the Methods of Calculating the Excise Price (unofficial translation), Article 10, Federal Tax Authority
- Checked
Worked examples
Worked example
1,000 litres of a drink with 6 g of sugar per 100 mL
The volume and sugar content are illustrations. The FTA has accepted a laboratory report for the drink.
- 6 g is 5 g or more but under 8 g, so the amount is AED 0.79 a litre.
- 1,000 litres × AED 0.79 = AED 790.00.
Excise tax: AED 790.00.
The same drink with 9 g of sugar per 100 mL, or with no accepted laboratory report, would carry AED 1,090.00.
Worked example
10 packs with a retail price of AED 30 each
The price and quantity are illustrations; the price excludes VAT and the FTA list gives no higher price.
- Excise Price: AED 30.00 ÷ 2 = AED 15.00.
- Tax on one pack: 100% × AED 15.00 = AED 15.00.
- 10 packs × AED 15.00 = AED 150.00.
Excise tax: AED 150.00.
Worked example
A 10 mL e-liquid with a retail price of AED 12
The price and volume are illustrations; the price excludes VAT.
- Half the retail price: AED 12.00 ÷ 2 = AED 6.00. Before 1 September 2026 that is the Excise Price, and the tax is AED 6.00.
- From 1 September 2026: the minimum is 10 mL × AED 1 = AED 10.00, which is higher, so the Excise Price is AED 10.00.
Excise tax from 1 September 2026: AED 10.00.
Assumptions and what the calculator leaves out
- The FTA list. The calculator does not hold the FTA's standard price list. Enter the list price when the product is on it.
- Other minimum prices. The Ministry of Finance says an existing minimum Excise Price continues to apply to cigarettes, water-pipe tobacco and similar products. The calculator does not hold those minimums; enter the FTA list price where it is higher.
- Concentrates and powders. Sweetened concentrates are measured as the final drink. The Excise Price of energy drink concentrates follows a separate method set by the Minister of Finance, which the calculator does not cover.
- Drinks outside the tax. Drinks with at least 75% milk or milk substitutes, baby formula, drinks for special dietary or medical use and drinks made in restaurants and served in open containers are not sweetened drinks. Drinks containing alcohol are outside both drink categories.
- Earlier rules. The calculator covers the rules in force from 1 January 2026. Before then, sweetened drinks were taxed on a different basis.
Filing the excise tax return
15th day after the end of the tax period
A business registered for Excise Tax must file its Excise Tax return by the 15th day after the end of each tax period.
- Applies to
- Excise Tax registrants (importers, producers, stockpilers and those releasing excise goods from a Designated Zone)
- Source
- Excise Tax Topics, Federal Tax Authority
- Checked
Note
Imported excise goods also pay customs duty, and excise tax paid on import adds to the value that import VAT is charged on. The customs duty calculator takes the excise tax as an input.