Lab Tests or Top Tier Tax — The New Reality

Lab Tests or Top Tier Tax — The New Reality

Under the new excise framework, every sweetened drink must be supported by a lab report if it is to benefit from the lower tax tiers — otherwise, the highest tax rate applies.

• A report from an accredited UAE laboratory must show total sugar content (natural + added), and whether artificial sweeteners are present.
• From the effective date, drinks without the required report will automatically be treated as “high sugar” category until proven otherwise.
• Transitional rules will cover stockpiled drinks and the period spanning implementation to avoid tax arbitrage.
• Accredited-lab lists and further guidance will be issued by the Ministry of Industry & Advanced Technology (MOIAT) and the FTA.

Conclusion

No lab certificate = highest tax tier. Testing is no longer optional.

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