What’s changing in the UAE from January 2026: taxation, the environment and digital policy

Oracle
10 December 2025
7.17 pm

From 1 January 2026, the United Arab Emirates is embarking on a new phase of regulatory and technological transformation. Several major measures will come into force, affecting both the companies, the consumers and the content creators.

On the programme: environmental taxation, digitalisation of financial services, mandatory electronic invoicing and support for digital professions. These changes reflect the Emirates’ determination to adapt to the challenges of the future whilst consolidating their regional leadership.

A more targeted tax on sugary drinks

From January, the tax on sugary drinks will no longer be a flat-rate charge, but calculated on the basis of the actual sugar content. This measure aims to encourage manufacturers to reduce the amount of sugar in their products and to provide consumers with better information.

This is an important step in the national strategy to health prevention and to combat diet-related diseases. Information campaigns will accompany this change in supermarkets and retail outlets.

A total ban on single-use plastics

Another key measure: the’a total ban on single-use plastics across the country. This includes disposable bags, cutlery, plates, cups and straws.

Companies will have to turn to sustainable alternatives or face penalties. This reform aims to drastically reduce plastic waste, to protect marine ecosystems and to position the Emirates within a practical ecological transition.

Increased digitalisation in finance and content

The banking and digital sectors will also be affected:

The Banking OTPs via text message (validation codes) will be phased out in favour of biometric solutions and authentication via secure apps.
The electronic invoicing will become mandatory for all businesses, as part of the national programme to standardise tax procedures.
The content creators, influencers and digital professionals will now have to obtain an official licence in order to practise legally. This regulation aims to professionalise the sector, protect consumers and ensure transparency in commercial partnerships.

Revised and clarified VAT rules

The rules governing the Value Added Tax (VAT) will also undergo changes. The thresholds, categories of taxable goods and reporting procedures will be revised to bring them into line with international standards. Further details will be provided by the federal tax authorities in January.

The aim: to simplify the requirements for businesses, whilst improving compliance and tax revenue collection.

Conclusion

With these new measures, The Emirates are kicking off 2026 with a focus on modernity, sustainability and smart regulation. From the environment to health, via digital technology and taxation, the country is reaffirming its commitment to building an ecosystem that is more transparent, more ethical and better suited to global challenges. A series of fundamental changes that herald a new decade of ambitious transformation.