7 Major Regulatory Changes in UAE for 2026

As the UAE ushers in 2026, residents and businesses alike must be prepared for a slew of regulatory changes that will impact everything from everyday living to business operations and consumer behaviour. From health-conscious taxation to environmental programs and digital transformation, here are seven key rule changes coming into play next year.

1. New Tiered Sugary Drink Tax

Starting January 1, 2026, the UAE will be replacing its flat 50% excise tax on all sweetened beverages with a multi-tiered system corresponding to sugar content. This is compliant with the unified GCC vision that was put forth to encourage the adoption of healthy consumption patterns.

Under the new structure:

1. The beverages containing 8 grams or more of sugar per 100ml will be levied at the rate of AED 1.10 per liter.
2. Beverages with 5-7.99 grams per 100ml are levied AED 0.80 per liter.
3. Beverages that have less than 5 grams per 100ml will be levied zero excise duty.

The change incentivizes beverage companies to reformulate their products to have lower sugar content while sending clearer price signals for health-conscious consumers. Energy drinks remain subject to a separate 100 percent excise tax.

2. Full Ban on Single-Use Plastics

Starting January 1, 2026, the UAE will institute a blanket ban on the importation, production, or trading of a long list of single-use plastic products. This is the next step in the country’s environmental strategy, which initially targeted plastic bag restrictions in 2024.

It also covers a ban on single-use plastic cups and lids, cutlery, containers of food, and plates. This effort will establish a high reduction of waste, promote re-usable alternatives in households, and support long-term UAE sustainability goals.

3. Updated VAT Procedures & Tax Reforms

New VAT rules, introducing changes from January 1st, 2026, aim at improving efficiency and increasing transparency in tax transactions. The new rules include:

Simplified Compliance: The need to generate self-bills within the framework of the reverse-charge scheme shall be eliminated, and only normal support documents such as contracts and bills would be required.

Five Year Refund Window: In respect of requesting a refund for credit balances with the Federal Tax Authority, a five year period has been specified from the end of the concerned taxable period. This new provision also enhances taxpayer rights and responsibilities.

These reforms minimize any administrative burden but simultaneously prevent claims that have been outstanding for a long time and give businesses more certainty about their tax treatment.

4. Mandatory E-Invoicing (Mid-2026)

A pilot scheme for compulsory e-invoicing begins on July 1, 2026, and a phased rollout will follow for B2B and B2G business activities. The solution uses international Peppol standards and the five-corner model for secure messaging of invoices.

Implementation Timeline:

• Those with an annual business revenue of AED 50 Million and above are required to appoint an Accredited Service Provider by July 31st, 2026, and go live on January 1st, 2027
• Companies with a revenue of less than AED 50 million are required to appoint a provider by March 31, 2027; and to be implemented by July 1, 2027
• Whereas, they have until March 31, 2027, for appointment, they must go live by October 1, 2027

E-invoices will optimize processes, improve VAT compliance, and might lower processing costs by as much as 66%. B2C transactions are not covered at this stage.

5. Banking Authentication Upgrade

According to the newest guidelines issued by  the UAE Central Bank, the use of one-time passwords sent via SMS and email will be completely phased out by as early as March 2026.

The banks will begin using app-based authentications with more secure ID verification tools, where their mobile applications will feature these tools. Improved security measures will then be provided for both national and international transactions, protecting customers’ financial information.

6. Content Creators Must Obtain Advertiser Licence

The  UAE Media Council has extended the deadline for all content creators, influencers, and advertisers to get the Advertiser (Mu’lin) Permit to January 31, 2026.

Individuals and businesses that market or endorse goods, services, or content on social media platforms even if for free are required to apply for this permit. It helps in controlling the advertising industry as well as ensuring the quality of the content. It is renewable for up to one year. It is free for the first three years for the UAE nationals and residents.

Who needs the Mu’lin Permit?

1. Content creators and influencers promoting products or services
2. Anyone posting sponsored content (paid or unpaid)
3. Businesses advertising through personal social media accounts

Who is exempt?

1. Individuals advertising only their own products/services through personal accounts
2. Minors under 18 engaged in educational, sports, or cultural content

7. New Jumua (Friday) Prayer Timing from January 2, 2026

From Friday, January 2, 2026 onwards, Friday prayers in all mosques in the UAE will be held at 12:45pm, which is about 30 minutes earlier than the current timing of 1:15pm.

In a statement, The UAE’s General Authority for Islamic Affairs, Endowments, and Zakat affirmed that such a decision was taken after considering societal factors after about four years of research. This comes after the UAE’s proclamation of 2026 as “The Year of the Family.”

Devotees are asked to reach mosques early to avoid missing the sermon, while schools, workplaces, and organizations have over a month before they need to adjust their timetables accordingly.

Preparing for Change

These comprehensive reforms reflect the UAE’s commitment to public health, environmental sustainability, digital transformation, and community well-being. Residents and businesses should begin preparing now to ensure smooth compliance with all new requirements.