What’s Changing
Starting 1 September 2026, the UAE will enforce a minimum selective excise price (MEP) of AED 1 per millilitre for all liquids used in vaping and electronic smoking devices. This new rule is in addition to existing excise taxes on tobacco and similar smoking products. (mof.gov.ae)
Who Is Affected
- Manufacturers/importers/suppliers of vaping-liquids
- Retailers who sell vaping and electronic smoking device liquids
- Distributors who move products between jurisdictions within UAE
Compliance Requirements
- Products must not be sold below AED 1/mL—any invoice or pricing below this may lead to violation.
- Packaging and labeling must clearly indicate volumes to show pricing compliance.
- Points of importation will require proof that product meets minimum excise pricing standards.
Practical Scenarios
Example A: Boutique Vape Shop
- A shop currently sells a 15 mL bottle at AED 12 → price per mL is AED 0.80 → must raise price or lose margin or risk non-compliance.
Example B: Importer
- Importer brings in 1 000 bottles of 100 mL each of liquid not meeting pricing → even if products are compliant under VAT, the excise rule renders them non-compliant at import or sale.
Penalties & Risk Management
Penalties for non-compliance could include: excise tax evasion fines, seizure of goods, or forced destruction. Manage risk by:
- Conducting regular internal audits of inventory and pricing
- Ensuring contract terms with suppliers allow cost visibility to maintain margin after price adjustments
- Pricing policies that anticipate regulation changes—don't wait till close to deadline.
Summary and Tips
- Review all current vaping-related inventory to ensure price/mL meets or exceeds AED 1.
- Train sales staff to understand and communicate pricing changes.
- Ensure systems (POS, billing, online stores) automatically enforce minimum pricing per mL.
This is part of the UAE’s efforts to modernize excise tax rules alongside evolving consumption patterns. Vendors must act now to avoid disruption and non-compliance.