Oct 30

🧃 FTA’s 2026 Excise Overhaul: Full Traceability, Reformulation, and Smart Compliance Opportunities

🚨 FTA’s 2026 Excise System Update

The Federal Tax Authority (FTA) is creating complete visibility between Customs, MoIAT laboratories, and Excise registration systems.
Starting 2026, every SKU (Stock Keeping Unit) will require one verified sugar formula.

If you import or manufacture multiple beverage variants or flavors, it’s essential to start testing and registering now to avoid future compliance delays.

🧩 Key Compliance Points

  • Every SKU = one verified sugar formula

  • All lab tests must be MoIAT-approved

  • Expired lab certificates require re-testing and re-uploading

  • Formula changes require new FTA approval

    • ❓FAQs on Sugar-Based Excise Certification

    Q1: Do I need a separate certificate for each flavor?
    👉 Yes. Each unique formulation (flavor/sugar mix) must be tested and certified individually.

    Q2: What happens if lab certificates expire?
    👉 You’ll need to conduct re-testing and re-upload the results to maintain SKU validity.

    Q3: Can I group multiple SKUs under one category?
    👉 Only if the formula and sugar/sweetener content are identical.


    🏷️ Reformulate, Save, and Stay Compliant: Turning the UAE Sugar Tax into an Advantage

    The UAE’s upcoming sugar-based excise tax will impact beverage margins — but proactive brands can reduce tax liability and strengthen their market position through strategic reformulation.

    💡 Opportunities for Beverage Companies

    ✅ Reduce sugar below 5g/100ml → lower excise rate.
    ✅ Switch to natural sweeteners (like stevia or monk fruit) → qualify for zero-tax status.
    ✅ Leverage lab certification as a marketing advantage — “Certified Low Sugar by MoIAT.”

    🧮 Practical Example

    A local juice producer reformulated its recipe:

    • Old recipe: 8.5g sugar → AED 1 excise per 500ml bottle

    • New recipe: 4.9g sugar → AED 0.25 excise per bottle

    With 1 million bottles/year, the company saves approximately AED 750,000 annually — while promoting a “low-sugar” product image.


    🏁 Conclusion

    Regulation is not just about compliance — it’s a trigger for innovation.
    Companies that treat the 2026 sugar tax as an opportunity to reformulate instead of merely complying will turn regulation into profit and brand strength.

    ❓Additional FAQs

    Q1: Can we use artificial sweeteners instead of sugar?
    👉 Yes, but lab certification must confirm zero sugar content.

    Q2: Can reformulated drinks keep the same barcode?
    👉 Yes, but they’ll need a new lab certificate and FTA classification.

    Q3: Will FTA publish public sugar thresholds or rates?
    👉 Expected by Q3 2025, under upcoming Cabinet Decision amendments.


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