Drinks Mixed at Point of Sale: Article 9

Taxed once is taxed enough: mixing a taxed concentrate at the till creates no new excise. Article 9 of Cabinet Decision No. 197 of 2025 places drinks mixed at point of sale in one of the five excise categories created by Cabinet Decision No. 197 of 2025, which took effect on 1 January 2026 and repealed the old Cabinet Decision No. 52 of 2019.

The tax is charged once — at import, at manufacture, or when the goods are released for consumption — and it is paid by whoever is the registered importer, producer or stockpiler at that moment. There is no registration threshold: handling even a single unit of an excise good in one of those three capacities creates the duty to register.

Downstream sellers — wholesalers and retailers buying goods on which excise has already been paid — do not pay excise again and generally do not need to register. Their duty is provenance: buy from registered suppliers and keep the invoices.

Goods taxed at 100% use the excise-price method in Article 11 of Cabinet Decision No. 197 of 2025. The excise price is the higher of the FTA's published standard price for the good (if one exists) and the designated retail sale price minus the tax inside it. Article 11(2) then gives the shortcut the whole market uses: for a 100% good, the tax equals half the designated retail sale price.

The designated retail sale price (Article 12) is the higher of the recommended selling price declared and affixed by the importer or producer — after deducting VAT — and the average retail market price after VAT. Hotel and restaurant markups are excluded from the definition, so minibar pricing does not inflate the base.

Worked example: drinks mixed at point of sale with a designated retail sale price of AED 100 carries AED 50 of excise tax. VAT of 5% is then charged on the excise-inclusive price — excise first, VAT on top.

Before the first shipment or production run, the business must register for excise tax on EmaraTax and receive its Tax Registration Number. At import, the importer of record declares the goods and the excise is assessed at customs clearance; manufacturers account for tax as goods are produced.

After that, the rhythm is monthly: one tax period per calendar month, with the return and the payment both due within 15 days of month-end. A month with no excise activity still needs a nil return — silence is penalised as late filing (AED 1,000 first time, AED 2,000 on repetition, under Cabinet Decision No. 40 of 2017 as amended (Administrative Penalties)).

Late payment accrues 14% per annum on the unpaid tax, charged monthly on the unpaid tax. Late registration itself costs AED 10,000. Keep every record — import papers, production logs, price declarations, lab reports — for five years.

The most expensive error is trading before registering — importing or producing drinks mixed at point of sale unregistered combines the AED 10,000 late-registration penalty with back-tax and 14% late-payment interest. The second is misclassification: assuming drinks mixed at point of sale falls outside the categories without checking the customs codes the Minister specifies.

Third, for price-based goods, is a weak or missing RSP declaration — if the FTA cannot accept your designated retail sale price, it substitutes its own, usually higher. For sweetened drinks, the equivalent failure is trading without an accepted lab report, which defaults the product to the AED 1.09 top band.

Finally, businesses forget the monthly nil return in quiet months, and they destroy records before five years. Both are entirely avoidable penalties.