From Updated VAT To Single-Use Plastic Ban, 6 New Upcoming Rules To Know Before 2026

A new year usually brings new routines, but 2026 is shaping up to be a big one for rules. These new rules will transform lives across the UAE. Some changes will nudge people toward healthier habits, while others will overhaul how companies operate. If you prefer staying ahead of the curve instead of finding out through a WhatsApp forward, here’s the rundown.

UAE Confirms Major Rule Changes for 2026

1. Sugary Drinks Get A Tiered Tax

The first major shift hits on January 1, 2026. The Ministry of Finance will move sugary drinks from a flat 50% tax to a tiered rate linked to how much sugar each drink contains. In short: more sugar, more tax. Less sugar, lower tax. It sounds simple, and it is. The UAE wants to match the GCC’s unified model, motivate brands to cut sugar and give people better options on the shelf.

2. Single-Use Plastics Face A Full Ban

The push for greener habits continues with a nationwide ban on importing, producing and selling a long list of single-use plastics from January 1, 2026. Dubai will cut out cups, lids, plates, food containers and cutlery. This rolls on from earlier bans on plastic bags and Styrofoam. The idea aims to reduce waste, provide more reusable alternatives and a cleaner long-term outlook for the environment.

3. VAT Rules Get Cleaner and Easier

Businesses will see some relief as a revised VAT law kicks in. Self-invoicing under the reverse charge mechanism will no longer be required. Companies will just have to keep normal records. There’s also a strict five-year cutoff for claiming refundable VAT. If a claim sits untouched beyond that window, it’s gone.

4. Banks Retire SMS And Email OTPs

Digital banking security is about to level up. Banks across the UAE will stop using SMS and email one-time passwords, as mentioned by Gulf News around March 2026. App-based authentication will replace the sms and email OTPs. This will lead to reduced fraud risks tied to SIM swapping and phishing.

5. Creators Need The Advertiser Licence

Content creators have until January 31, 2026, to secure the UAE Advertiser (Mu’lin) Permit. Anyone promoting or reviewing anything online needs it, even if they’re doing it for free. The licence lasts a year, and the first three years are free for residents and citizens.

Also Read: UAE Rolls Out Unified Passport And Emirates ID Renewal That Simplifies Documentation

6. Digital Invoicing Rolls Out

Finally, businesses will shift to a mandatory electronic invoicing system for B2B and B2G transactions. A pilot begins in July 2026, with wider phases to follow.

So here’s a lowdown of how these 6 rules in the UAE will bring in life-changing benefits.

Cover Image Courtesy: CanvaPro/pcess609 from pcess609, Wachiwit from Getty Images