UAE Federal Tax Authority Issues Updated Excise
Tax Guide: New Models for Sweetened Drinks

The UAE Federal Tax Authority (FTA) has released the latest version of its “Taxable Persons Guide for Excise Tax (Excise Goods) – ETGTP2,” dated February 10, 2026. This updated guide serves as a technical manual for navigating UAE excise legislation, specifically focusing on product classifications and calculation methodologies.

Introduction of Tiered-Volumetric ModelA significant highlight of the updated guide is the introduction of a tiered-volumetric model for calculating excise tax on sweetened drinks. This shift, alongside updates to the ad valorem model, aims to provide more granular tax structures based on product types and volumes. The guide also refines the definitions for carbonated, energy, and sweetened beverages to ensure precise classification.

Key Updates in the 2026 VersionThe revised document (ETGTP2) incorporates several essential amendments:

• Comprehensive updates to excise goods lists and applicable tax rates,
• Revised provisions regarding deductible tax for businesses,
• Enhanced legislative transparency through the addition of detailed legal footnotes and references.

By providing specific exclusions and key considerations for each excise category, the FTA aims to streamline compliance for taxable persons and clarify the impact of general legislative provisions on specific goods.

Official UAE FTA taxable person guide for excise tax PDF