#sweeteneddrinks

FTA Decision No. 10 of 2025: Standardised Sugar Calculation for Sweetened Drink Concentrates | RVG

As regulation of sweetened drinks continues to evolve under the UAE Excise Tax regime, the Federal Tax Authority (FTA) has issued Decision No. 10 of 2025, introducing a standardised mechanism for calculating the percentage of sugar and other sweeteners in certain concentrated products. The Decision will take effect from 1 January 2026.

Scope of the Decision

The Decision applies to concentrates, powders, gels, and extracts that can be converted into sweetened drinks, specifically where no reliable guidelines exist or where existing guidance on sugar content has proven inaccurate. Its primary objective is to ensure correct excise tax classification based on actual sugar and sweetener content.

Standard Calculation Mechanism

To determine the applicable excise tax category, taxable persons must obtain a laboratory report from an accredited laboratory specifying the total quantity of sugar and other sweeteners per unit of the concentrated product. Based on this data, the final drink volume is calculated using a standard formula prescribed by the FTA, followed by determination of the dilution ratio. This approach ensures consistency and transparency in excise tax assessments.

Key Exclusions

The mechanism does not apply to:

Liquid concentrates containing less than 5 grams of sugar per 100 ml, which fall under the Low-Sugar Category; or

Products containing only artificial sweeteners, as confirmed by laboratory analysis.

What Businesses Should Consider

FTA Decision No. 10 of 2025 provides much-needed clarity for businesses dealing in sweetened drink concentrates. Companies should review product formulations, laboratory testing procedures, and internal compliance systems well before 1 January 2026 to avoid misclassification and potential penalties.

For expert guidance on excise tax compliance and product classification, RVG is well-positioned to support businesses in navigating the upcoming changes.