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Taxable Persons Guide

Excise Tax | ETGTP1

January 2026

Excise Tax Guide | Taxable Persons | ETGTP1 1
Contents
1. Glossary ............................................................................ 5
2. Introduction ....................................................................... 8
2.1. Purpose of this guide.................................................................................. 8
2.2. Changes to the previous version of the guide ......................................... 8
2.3. Who should read this guide? ..................................................................... 8
2.4. How to use this document .......................................................................... 8
2.5. Other important publications ..................................................................... 9
2.6. Legislative references ................................................................................ 9
2.7. Status of this guide ................................................................................... 11
3. Getting Additional Help .................................................. 12
3.1. Chapter summary ...................................................................................... 12
3.2. FTA support channels .............................................................................. 12
3.2.1. Communication channels ..................................................................... 12
3.2.2. Private clarifications .............................................................................. 12
3.3. Receiving support from external agents ................................................. 13
4. Explaining Excise Tax .................................................... 14
4.1. Chapter summary ...................................................................................... 14
4.2. What is Excise Tax? .................................................................................. 14
4.3. How does Excise Tax work? .................................................................... 15
4.4. Excise Goods and applicable rates ......................................................... 15
5. Registration ..................................................................... 17
5.1. Chapter summary ...................................................................................... 17
5.2. Who must register? .................................................................................. 17
5.3. When to register? ...................................................................................... 17
5.3.1 Registration on the introduction of Tax on a new product ..................... 18
5.3.2 Exceptions to registration ..................................................................... 18
5.4. Registration as a Warehouse Keeper ...................................................... 19
5.5. How to register .......................................................................................... 20
5.6. Failure to notify the FTA of the requirement to be registered ............... 21
5.7. Deregistration ............................................................................................ 21

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6. Tax points ........................................................................ 23
6.1. Chapter summary ...................................................................................... 23
6.2. Imported Excise Goods ............................................................................ 23
6.3. Excise Goods stockpiled in the UAE ....................................................... 23
6.4. Excise Goods released for consumption in the UAE ............................. 25
6.4.1. Production ............................................................................................ 26
6.4.2. Excise Goods leaving a Designated Zone ............................................ 27
7. Procedures on Import .................................................... 29
7.1. Chapter Summary ..................................................................................... 29
7.2. Non-registered Importers ......................................................................... 29
7.3. Registered Importers ................................................................................ 30
8. Local purchases by Taxable Persons........................... 32
8.1. Chapter summary ...................................................................................... 32
8.2. Local purchase reporting requirements.................................................. 32
9. Designated Zones ........................................................... 34
9.1. Chapter summary ...................................................................................... 34
9.2. Definition of a Designated Zone .............................................................. 34
9.3. Implications of using a Designated Zone ................................................ 34
9.4. Warehouse Keepers .................................................................................. 35
9.4.1. Responsibilities of the Warehouse Keeper ........................................... 35
9.5. Goods entering a Designated Zone ......................................................... 37
9.6. Transfer of goods from a Designated Zone ............................................ 37
9.6.1. Procedures to be followed during a transfer from a Designated Zone .. 39
9.7. Removal from a Designated Zone ........................................................... 39
9.8. Designated Zone reporting ....................................................................... 41
9.8.1. Scenarios for Designated Zone reporting requirements ....................... 41
10. Deductible Excise Tax .................................................... 48
10.1. Chapter Summary ..................................................................................... 48
10.2. What is Deductible Tax? ........................................................................... 48
10.3. Tax Period in which Tax may be deducted ............................................. 49
10.4. How to claim Deductible Tax? ................................................................. 50

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11. Excise Tax returns and payments................................. 52
11.1. Chapter summary ...................................................................................... 52
11.2. Excise Tax returns .................................................................................... 52
11.3. Excise Tax payments ................................................................................ 52
11.4. Excess Refundable Tax ............................................................................ 53
11.5. Errors in an Excise Tax Return ................................................................ 54
12. Digital Tax Stamps .......................................................... 56
12.1. Chapter Summary ..................................................................................... 56
12.2. What is the Digital Tax Stamps Scheme? ............................................... 56
12.3. What does the Digital Tax Stamps Scheme require? ............................. 56
12.4. Scenarios requiring the return of Digital Tax Stamps............................ 57
12.5. Process of returning Digital Tax Stamps ................................................ 58
13. Account management .................................................... 59
13.1. Chapter summary ...................................................................................... 59
13.2. Changing account details ......................................................................... 59
13.3. Change in circumstances ......................................................................... 59
14. Tax Audits ....................................................................... 61
14.1. Chapter summary ...................................................................................... 61
14.2. Why is a Tax Audit necessary? ................................................................ 61
14.2.1. How often will Businesses be audited? ............................................. 61
14.2.2. Where and when will the audit take place? ....................................... 61
14.2.3. Will the Person be informed of the audit before it takes place? ......... 62
14.3. What can a Person expect to happen during a tax audit? ..................... 62
14.4. What level of conduct is required from the Taxable Person? ............... 62
14.5. What powers does the FTA have during a Tax Audit? .......................... 63
14.6. What rights does a Taxable Person have during a Tax Audit? ............. 63
14.7. Result of a Tax Audit ................................................................................ 63
14.8. Tax Evasion ............................................................................................... 63
14.9. Statute of limitation ................................................................................... 64
15. FTA decisions ................................................................. 66
15.1. Chapter summary ...................................................................................... 66

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15.2. Overview of the appeals process ............................................................ 66
15.3. What matters can be challenged? ........................................................... 66
15.3.1. Request a Tax assessment review .................................................... 67
15.3.2. Request a reconsideration ................................................................ 68
15.3.3. FTA decision on Tax assessment review or reconsideration request 68
15.4. Objections to TDRC .................................................................................. 69
15.5. Appealing a decision of the TDRC to a Competent Court ..................... 69
16. Updates and amendments ............................................. 71




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1. Glossary
Administrative Penalties Assessment: A decision issued by the FTA in relation to
the Administrative Penalties due.
Business: Any activity conducted regularly, on an ongoing basis and independently
by any Person, in any location, which involves or may involve trading in Excise Goods.
Business Day: Any day of the week, except weekends and official holidays of the
Federal Government.
Commercial Evidence: The document issued by sea, air or land transport companies
and agents, which proves the transfer and departure of Excise Goods from the UAE
to outside the UAE, and includes any of the following documents:
• air waybill or air manifest
• sea waybill or sea manifest
• land waybill or land manifest
Deductible Tax: The Tax that has been paid, or considered as have been paid, by a
Taxable Person, which it may deduct in accordance with the provisions of the Excise
Tax Decree-Law.
Designated Zone: Any fenced area established as a free zone that cannot be entered
or exited except through a designated road, and any area designated by the FTA as
being subject to the supervision of a Warehouse Keeper, in accordance with the
provisions of the Excise Tax Executive Regulation.
Due Tax: Tax that is calculated and imposed pursuant to the provisions of the Excise
Tax Decree-Law.
Excise Goods: Goods that will be determined as being subject to Tax by a Cabinet
Decision upon the recommendation of the Minister.
Export: The departure of goods from the territory of the UAE.
FTA: Federal Tax Authority, being the Authority responsible for the administration,
collection and enforcement of federal taxes in the UAE.
Import: The arrival of goods from abroad into territory of the UAE.
Importer: The Person whose name appears for customs clearance purposes as the
Importer of the Excise Goods on the date of Import.

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Legal Representative: The guardian or custodian of an incapacitated Person or
minor, or the bankruptcy trustee appointed by the court for a company that is in
bankruptcy, or any other Person legally appointed to represent another Person.
Minister: Minister of Finance.
Official Evidence: An export certificate issued by one of the customs departments in
the UAE or a clearance certificate issued by any of these departments or competent
authorities in the UAE regarding Excise Goods leaving the UAE after verifying their
departure from it, or any document or clearance certificate certified by the competent
authorities in the country of destination stating the entry of the Excise Goods.
Person: A natural or legal person.
Refundable Tax: Amounts that have been paid and that the FTA may return to the
Person pursuant to the provisions of the Excise Tax Decree-Law.
Registrant: The Taxable Person who has been issued with a TRN.
Stockpiler: The Person who owns Excise Goods and cannot demonstrate that such
goods had been previously subject to Tax pursuant to the conditions specified in the
Excise Tax Executive Regulation.
Tax: Excise Tax.
Tax Agent: Any Person registered with the FTA who is appointed on behalf of another
Person to represent him before the FTA and assist him in the fulfilment of his
obligations and the exercise of his associated Tax rights.
Tax Audit: A procedure undertaken by the FTA to inspect the commercial records or
any information, data or goods related to a Person to verify the fulfilment of its
obligations in accordance with the provisions of the Excise Tax Decree-Law or the Tax
Procedures Law.
Tax Evasion: The Person’s use of illegal means, resulting in the reduction of the
amount of the Due Tax, non-payment thereof, or a refund of a Tax that the Person did
not have the right to have refunded.
Tax Period: A specific period of time for which the Payable Tax shall be calculated
and paid.
Tax Registration: A procedure whereby the Taxable Person or his Legal
Representative registers at the FTA for Tax purposes.
Tax Registration Number (TRN): A unique number issued by the FTA for each
Person registered for Tax purposes.

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Tax Return: Information and data specified for Tax purposes and submitted by the
Taxable Person in accordance with the form prepared by the FTA.
Taxable Person: Any Person registered or obligated to register for Tax purposes
under the provisions of the Excise Tax Decree-Law.
UAE: United Arab Emirates.
Voluntary Disclosure: A form prepared by the FTA pursuant to which the Taxpayer
notifies the FTA of any error or omission in the Tax Return, Tax Assessment or Tax
Refund application in accordance with the provisions of the Tax Procedures Law.
Warehouse Keeper: Any Person approved and registered at the FTA to supervise a
Designated Zone in accordance with the provisions of the Excise Tax Executive
Regulation.


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2. Introduction
This is part one of two Taxable Person Guides for Excise Tax, covering the Excise
Tax legislation in the UAE:
▪ ETGTP1 – covers the legislative provisions as they apply to Excise Goods
generally, and
▪ ETGTP2 – covers the products subject to Excise Tax and the application of the
general provisions on Excise Goods.
The two guides together replace EG001.
2.1. Purpose of this guide
This guide is the main reference guide to Excise Tax in the UAE. It provides you with:
• an overview of the main Excise Tax rules and procedures in the UAE and how to
comply with them,
• assistance with the more likely questions Businesses may have, and
• references to more specialised publications and where they have been published.
Not everything within this guide will apply to every Business and it is not expected that
every Business will need to read the entire document.
2.2. Changes to the previous version of the guide
A number of changes have been made to the previous version of the guide and are
identified in chapter 16 of this guide.
2.3. Who should read this guide?
Anyone who is in Business and imports, stockpiles and/or produces Excise Goods or
anyone who is a Warehouse Keeper of a Designated Zone and is, or thinks that they
should be, registered for Excise Tax in the UAE should read this guide.
2.4. How to use this document
The guide is split into chapters by topic. This includes an initial chapter in respect of
where to seek further assistance should you have questions on the content of this
guide, or on areas that are not specifically dealt with here.
Subsequent chapters are organised by subject matter to cover the fundamentals
involved in the Excise Tax compliance process, which should be generally applicable

Excise Tax Guide | Taxable Persons | ETGTP1 9
to Excise Tax-registered Persons, from registering through to submitting returns and
making payments.
You will also find what to expect in respect of the FTA compliance checks as well as
dispute resolution procedures, which are available to you in the event that you
disagree with a decision of the FTA.
This guide is intended to be read in conjunction with the relevant legislation and other
relevant guidance published by the FTA.
2.5. Other important publications
The FTA publishes other documents intended to provide additional useful information.
These publications will be in the form of:
Publication type Series reference Purpose
Guide ETGXXX A document that provides Taxpayers
with guidance on specific Excise Tax
matters. These may be industry or
transaction-type specific. Guides are
updated and replaced as necessary.
Public
Clarification
EXTPXXX A document summarising a specific
Excise Tax technical or administrative
position, which has been determined by
the FTA.
Public
Clarification
TAXPXXX A document that provides Taxpayers
with guidance on specific Tax procedural
matters.
In all cases, these publications will be available on the FTA’s website. Please refer to
the latest, approved version of the relevant publication which is available on the
website.
It is important to keep up to date with any changes, to ensure that Excise Tax is
correctly reported and the required procedures are complied with.
2.6. Legislative references
In this guide, the following legislation will be referred to as follows:
• Federal Decree-Law No. 7 of 2017 on Excise Tax and its amendments is referred
to as “Excise Tax Decree-Law”,
• Federal Decree-Law No. 28 of 2022 on Tax Procedures and its amendments is
referred to as “Tax Procedures Law”.

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• Cabinet Decision No. 37 of 2017 on the Executive Regulation of the Federal
Decree-Law No. 7 of 2017, and its amendments, is referred to as “Excise Tax
Executive Regulation”,
• Cabinet Decision No. 42 of 2018 on Marking Tobacco and Tobacco Products is
referred to as “Cabinet Decision No. 42 of 2018”,
• Cabinet Decision No. 33 of 2019 on Administrative Penalties for Violations related
to Marking Excise Goods, is referred to as “Cabinet Decision No. 33 of 2019”
• Cabinet Decision No. 197 of 2025 on Excise Goods, Tax Rates or Amounts
Imposed on Excise Goods, and the Methods of Calculating the Excise Price, is
referred to as “Cabinet Decision No. 197 of 2025”,
• Cabinet Decision No. 55 of 2019 on Excise Price for Tobacco Products, is referred
to as “Cabinet Decision No. 55 of 2019”,
• Cabinet Decision No. 74 of 2023 on the Executive Regulation of Federal Decree-
Law No. 28 of 2022 on Tax Procedures is referred to as “Tax Procedures Executive
Regulation”,
• Ministerial Decision No. 237 of 2019 on the Implementation of the Cabinet Decision
No. 55 of 2019 On Excise Price for Tobacco Products, is referred to as “Ministerial
Decision No. 237 of 2019”,
• Ministerial Decision No. 249 of 2025 on Exception of Smoking Cessation Products
from the Definition of Tobacco and Tobacco Products for the Purposes of Cabinet
Decision No. 52 of 2019 on Excise Goods, Excise Tax Rates and the Methods of
Calculating the Excise Price and its amendments, is referred to as “Ministerial
Decision No. 249 of”,
• Federal Tax Authority Decision No. 3 of 2018 on Implementing the Marking
Tobacco and Tobacco Product Scheme, is referred to as “FTA Decision No. 3 of
2018”
• Federal Tax Authority Decision No. 2 of 2019 on Implementing the Marking
Tobacco and Tobacco Product Scheme, and its amendments, is referred to as
“FTA Decision No. 2 of 2019”
• Federal Tax Authority Decision No. 1 of 2021 on the Mechanism for Calculating
the Average Retail Selling Price of Excise Goods in the Market, is referred to as
“FTA Decision No. 1 of 2021”
• Federal Tax Authority Decision No. 3 of 2021 on Implementing the Marking
Tobacco and Tobacco Product Scheme, and its amendments, is referred to as
“FTA Decision No. 3 of 2021”,
• Federal Tax Authority Decision No. 8 of 2024 on Mechanism for Correction of Error
or Omission in the Tax Return Submitted to the Federal Tax Authority for VAT is
referred to as “FTA Decision No. 8 of 2024”,

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• Federal Tax Authority Decision No. 1 of 2025 on Cases of Extension of the
Deadlines for Accepting the Submission of a Tax Assessment Review Request or
a Request for Reconsideration is referred to as “FTA Decision No. 1 of 2025”,
• Federal Tax Authority Decision No. 6 of 2025 on Standards, Controls and
Procedures for Dealing with Shortage Within the Designated Zone due to the
Natural Characteristics of Excise Goods is referred to as “FTA Decision No. 6 of
2025”,
• Federal Tax Authority Decision No. 10 of 2025 on The Mechanism for Calculating
the Percentage of Sugar and Other Sweeteners in Concentrates, Powders, Gels,
and Extracts for which no Guidelines are Available or where their Guidelines were
Proven Inaccurate, is referred to as “FTA Decision No. 10 of 2025”, and
• Federal Tax Authority Decision No. 11 of 2025 on the Additional Cases Where
Excise Tax Paid on Excise Goods May Be Deducted and Controls for such
Deduction, is referred to as “FTA Decision No. 11 of 2025”.
2.7. Status of this guide
This Guide is not a legally binding document, but is intended to provide assistance in
understanding and applying the Excise Tax legislation. This guide is not intended for
legal reference but serves as a framework of the general operation of Excise Tax in
the UAE.
The information provided in this Guide should not be interpreted as legal or Tax advice.
It is not meant to be comprehensive and does not provide a definitive answer in every
case. It is based on the legislation as it stood when the Guide was published. Each
Person’s own specific circumstances should be considered.
The Excise Tax legislation, implementing decisions, and FTA Decisions referred to in
this document will set out the principles and rules that govern the application of Excise
Tax in the UAE. Nothing in this publication modifies or is intended to modify the
requirements of any legislation.
This document is subject to change without notice.


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3. Getting Additional Help
3.1. Chapter summary
In the event that you need more information about Excise Tax or need assistance with
your Tax affairs, you can choose to contact the FTA for guidance or to seek support
from an external Tax Agent.
3.2. FTA support channels
The FTA is committed to supporting taxpayers in learning about Excise Tax in an easy,
accessible and straightforward manner. In addition to the Guides and Public
Clarifications, various support channels are available to assist taxpayers in addressing
their enquiries and to clarify specific Tax technical matters.
3.2.1. Communication channels
Taxpayers have access to a range of communication channels through which they
may contact the FTA for assistance. These include:
• calling 800 829 23 for real-time support with general tax enquiries or to report
technical issues with accessing the EmaraTax portal,
• chatting with the AI-powered virtual assistant (i.e. Tara) available on the FTA’s
website (www.tax.gov.ae),
• submitting enquiries using the online form available on the FTA’s website, or
• visiting the nearest FTA’s service center for in-person assistance.
It should be noted that the communication channels will not be able to give advice on
case specific transactions or specialised topics. These matters will be handled through
alternative channels.
3.2.2. Private clarifications
A Person may apply for a private clarification on specific Tax technical matters of
uncertainty relating to the Person’s Business. Before submitting an application for a
private clarification, the Person should review the Private Clarifications Guide
(“TPGPC1”), the relevant Tax legislation, guides, public clarifications as well as other
information available on the FTA’s website.





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3.3. Receiving support from external agents
A Business may decide to obtain help or advice about its Excise Tax obligations from
a registered Tax Agent or other Tax advisor. However, only a Legal Representative
(generally appointed by court to manage the affairs of another Person, for example in
the case of bankruptcy) or a registered Tax Agent may represent another Person in
dealings with the FTA. Businesses may refer to the FTA’s website for the list of
registered Tax Agents.
It is not a requirement for Excise Tax Registration that a Business appoints a Tax
Agent. It is also important to note that the appointment of a Tax Agent does not relieve
the Taxable Person from the compliance obligations imposed by the Tax legislation,
e.g. the responsibility for the accuracy of your Excise Tax affairs remains with the
Taxable Person.


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4. Explaining Excise Tax
4.1. Chapter summary
The purpose of this chapter is to give a brief overview of the principles which govern
Excise Tax in the UAE and to provide a foundation for the information given in further
chapters.
4.2. What is Excise Tax?
Excise Tax is an indirect Tax levied on specific Excise Goods which are either:
• imported into the UAE,
• produced within the UAE,
• released from a Designated Zone, or
• stockpiled in the UAE (where Excise Tax has not previously been paid on the
goods in the UAE and stockpiling is undertaken for Business purposes).1
Excise Tax is generally levied on goods which are considered harmful to the health of
the general public. The aim of Excise Tax is, therefore, to discourage consumption of
those specific goods by the general public.
Excise Tax is payable by any Person engaged in the activities listed above,
specifically:
• Importers of Excise Goods,
• producers of Excise Goods,
• Persons releasing Excise Goods from a Designated Zone,
• Stockpilers of Excise Goods, in certain cases, and
• Warehouse Keepers, in certain cases.2
The Excise Tax will become a liability of another Person involved in any of the above
activities, where the Person originally liable for the Tax fails to meet his Excise Tax
payment obligation.
In all other cases, where a Business or consumer purchases Excise Goods within the
UAE, the Excise Tax should already be included in the price for the goods and is
generally not reflected separately. In certain cases, Excise Goods will be physically
labelled to indicate that Excise Tax has been paid in respect of those goods. Further
details on the labelling of Excise Goods can be found in chapter 12 that covers the
Digital Tax Stamps Scheme.

1 Article 2 of the Excise Tax Decree-Law.
2 Article 4(1) of the Excise Tax Decree-Law.

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4.3. How does Excise Tax work?
At the point that Excise Goods are either imported, stockpiled, produced or released
for consumption in the UAE, the Importer, Stockpiler, producer or Person releasing
those goods at the time must register/be registered for Excise Tax and account for the
Excise Tax due to the FTA. This is done via various declarations which are used to
prepopulate the Registrant’s Tax Return.
Excise Tax is not due at every stage of the transaction like some other indirect taxes
such as VAT. As a result, a relatively low number of Businesses will be required to
register for Excise Tax and account for the Tax to the FTA.
4.4. Excise Goods and applicable rates
The goods which are subject to Excise Tax in the UAE, and the rates of Tax applicable
to those goods, are as follows:
Excise Good Tax rate3
Effective date of
current tax rate
Notes
Tobacco and
tobacco products
100% 1 October 2017 -
Energy drinks 100% 1 October 2017 -
Carbonated drinks 50% 1 October 2017
Abolished as a
separate category
of Excise Good
from 1 January
2026, and subject
to Tax under
tiered-volumetric
model if
Sweetened Drinks
Liquids used in
electronic smoking
devices and tools
100% 1 December 2019 -
Electronic smoking
devices and tools
100% 1 December 2019 -
Sweetened drinks 50% 1 December 2019
Replaced with
tiered-volumetric
model from 1
January 2026.

3 Cabinet Decision No. 197 of 2025.

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Tiered-volumetric
rates depending
on categorisation
of the sweetened
drink based on
amount of sugar
and other
sweeteners.
1 January 2026
For more details about the definitions of Excise Goods, including the applicable rates,
valuation and calculation methods, please refer to the Guide ETGTP2.


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5. Registration
5.1. Chapter summary
The purpose of this chapter is to provide guidance on the Businesses which are
required to register for Excise Tax and the process to follow to become registered for
the Tax.
5.2. Who must register?
Excise Tax is the responsibility of any Person engaged in any of the following taxable
activities:
• the importation of Excise Goods into the UAE,
• the production of Excise Goods in the UAE,
• the release of Excise Goods from a Designated Zone in the UAE,
• the stockpiling of Excise Goods in the UAE in certain cases, where Excise Tax has
not previously been paid on the goods in the UAE and stockpiling is undertaken for
business purposes.4
Registration is also required by another Person involved in any of the above activities
and becomes liable to pay Excise tax, where the Person originally liable for the Tax
fails to meet his Excise Tax payment obligation.5
Such Person must register with the FTA and submit Tax Returns and pay Excise Tax,
unless one of the exceptions listed in section 5.3.2 applies.
5.3. When to register?
There is no registration threshold for Excise Tax. Therefore, any Person who has
been involved or has the intention to be involved in any of the activities listed in
section 5.2 must register and account for Excise Tax, unless the Person is excepted
from registration.
Any Person involved or forming the intention to be involved in any of the activities
listed in section 5.2 must notify the FTA, within 30 days of the end of the month in
which they were involved or formed the intention to be involved, that they have a
liability to be registered for Excise Tax.6 The Person will then be registered with effect

4 Articles 4(1) of the Excise Tax Decree-Law.
5 Article 5 of the Excise Tax Decree-Law.
6 Article 5(2) of the Excise Tax Decree-Law.

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from the first day of the month in which they started conducting any of the activities
listed in section 5.2.7
The Person who becomes liable to pay Excise Tax due to the failure of the Person
engaged in the taxable activities to settle the Tax, must apply for registration within 30
days from the date on which they become aware or should have become aware of the
failure of the Person originally liable for the Tax to meet his payment obligation.8
5.3.1 Registration on the introduction of Tax on a new product
Where a Person believes they will have a requirement to be registered for Excise Tax
at the date the Tax is introduced on a new product they will be required to notify the
FTA of their requirement to be registered during the period announced by the FTA.
5.3.2 Exceptions to registration
The FTA may except a Person from registration in the case where they do not regularly
Import Excise Goods into the UAE. Persons importing Excise Goods for purposes
other than conducting Business, may also be excepted from registration.9
The term “regular” is interpreted to mean more than once in a 6-month period or more
than three times over a 24-month period.
In cases of exception from registration, the Person (i.e. the traveller or individual)
importing the goods will not be exempt from paying the Excise Tax due on the goods,
but only from registering and filing Excise Tax Returns. Instead, the Person will be
required to pay the Excise Tax due on the importation of the Excise Goods (where it
exceeds the duty-free limit imposed by the Customs Law), before or at the point of
importation in order for the goods to clear Customs.
For further details on the procedure to be followed by a non-registered Importer when
importing Excise Goods in to the UAE, please see chapter 7.
Example:
Mr. A imports Excise Goods worth 10,000 AED on 1 March 2022. This is the first time
he has imported Excise Goods, and he has no current intention to do so again.

7 Article 3(3) of the Excise Tax Executive Regulation.
8 Article 5 of the Excise Tax Decree-Law.
9 Article 6 of the Excise Tax Decree-Law.

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As Mr. A has only been involved in one such Import in a 6-month period, he does not
have to register for Excise Tax. However, Mr. A must pay the Excise Tax due on the
full value of the goods in order to clear the goods through Customs.
5.4. Registration as a Warehouse Keeper
Any Person who operates or intends to operate a “Designated Zone”, otherwise known
as an excise warehouse or bonded warehouse, must register as a Warehouse
Keeper.10 It is not possible to operate a Designated Zone without an appointed
Warehouse Keeper.
The Warehouse Keeper must submit a registration application to the FTA providing
certain details about themselves and their intended operations. In addition, the
Warehouse Keeper must submit a Designated Zone registration application in respect
of each Designated Zone for which they are requesting permission to supervise.
A Warehouse Keeper may complete and submit a Warehouse Keeper registration
application to the FTA, yet the registration will not be completed and approved by the
FTA until the Person has also submitted at least one Designated Zone application
form. The FTA will then register that Person as a Warehouse Keeper with authorisation
to supervise a specific Designated Zone or zones from the date the application is
approved (or from a future date as may be agreed).
In the course of approving an application to register a Designated Zone, the
Warehouse Keeper will be required to pay a registration fee in respect of each
Designated Zone which is registered. The Warehouse Keeper may also be requested
to submit a financial guarantee, which will be determined by the FTA based on certain
factors as specified in the Excise Tax Public Clarification on Excise Tax Designated
Zones – Calculation of Financial Guarantees (EXTP008).
The Warehouse Keeper will receive an electronic registration certificate which will
confirm the details of the Designated Zone(s) over which that Person is appointed,
including any conditions or requirements which the Warehouse Keeper is required to
fulfil in order to maintain the security and status of the Designated Zone.
The Warehouse Keeper will receive a Warehouse Keeper registration number
following registration, which should be used on all official correspondence with the
FTA. The Warehouse Keeper will also receive a Designated Zone registration number,
which will be a suffix attached to the Warehouse Keeper registration number and will
be different for each Designated Zone which is registered. The Designated Zone

10 Article 8 of the Excise Tax Decree-Law, read with Article 9 of the Excise Tax Executive Regulation.

Excise Tax Guide | Taxable Persons | ETGTP1 20
registration number is particularly important for tracking the movement of Excise
Goods between different Designated Zones.
A Warehouse Keeper will be liable for the Excise Tax due on any Excise Goods
leaving that Warehouse Keeper’s Designated Zone, where the Taxable Person
responsible for releasing the goods has not paid the Excise Tax due.
The FTA may impose certain conditions on the registration of a Warehouse Keeper
including the following, as detailed in the Excise Tax Public Clarification on
Registration of Warehouse Keeper and Registration and Renewal of Registration of
Designated Zones (EXTP010):
• specify the quantity of Excise Goods which can be kept in the Designated Zone,
• specify the type of Excise Goods which can be kept in the Designated Zone,
• require the Warehouse Keeper to provide a financial security,
• impose additional reporting requirements,
• specify the level of physical security required over the Designated Zone,
• specify the checks which the Warehouse Keeper is required to make over the
goods entering the Designated Zone, and
• specify the conditions of entry which may be granted to the Designated Zone and
any access restrictions which the Warehouse Keeper is required to impose.
It should be noted that Designated Zone registrations must be renewed annually. If
the Designated Zone registration is not renewed, the registration will expire and the
Designated Zone status will be lost. Any Excise Goods in the warehouse at the time
the registration expires without a renewal will be deemed to be released from the
Designated Zone and the relevant Excise Tax will be payable. It is, therefore, important
to ensure that the Designated Zone registration is renewed on time and the application
duly submitted before the annual deadline passes.
In order to renew the registration of a Designated Zone, the Warehouse Keeper will
need to amend the Designated Zone registration application that was previously
submitted and update the relevant information and pay a renewal fee in respect of the
Designated Zone.
The effect of registering a specific Designated Zone is covered in further detail in
Chapter 9 below.
5.5. How to register
A registration application may be initiated on the FTA’s website (www.tax.gov.ae). The
form is available under the “Services” drop-down menu as “Registration”.

Excise Tax Guide | Taxable Persons | ETGTP1 21
Businesses are required to complete the questions on the online portal and are
required to upload supporting documents in order to confirm their Business status and
activities.
Once the application has been processed, Businesses will then receive notification
from the FTA on the outcome of their registration application.
Further detailed guidance on completion of the appropriate registration forms can be
found on the FTA website.
5.6. Failure to notify the FTA of the requirement to be registered
If a Person fails to notify the FTA of a requirement to register for Excise Tax within the
specified timeframe, the FTA may issue a Tax assessment to collect any potentially
underpaid Excise Tax, and also impose an administrative penalty.
Businesses involved in taxable activities relating to Excise Goods will not be
authorised to conduct such activities without being registered for Excise Tax.11
5.7. Deregistration
A Taxable Person shall apply to deregister from Excise Tax when the Person is no
longer engaged in taxable activities, i.e. the import, production or stockpiling of Excise
Goods in the UAE.12
The Person must notify the FTA that he is no longer engaged in taxable activities
within 30 days from the date his taxable activity ceases. The FTA will deregister the
Taxable Person with effect from the date his taxable activity ceased.13
In order to deregister, a Taxable Person must be up to date with all Tax Return
submissions and payments of Tax and penalties.
The FTA may deregister a Registrant without him submitting a request if that
Registrant is either no longer responsible for Excise Tax or if maintaining the Tax
Registration would prejudice the integrity of the Tax system.14
The FTA may reject a Person’s deregistration application in the following instances:
• if it appears that the Person still has the intention to conduct a taxable activity (see
section 5.2) within the subsequent 12 months,

11 Article 5(1) of the Excise Tax Decree-Law.
12 Article 7 of the Excise Tax Decree-Law.
13 Article 6(1) and (3) of the Excise Tax Executive Regulation.
14 Article 6(5) of the Excise Tax Executive Regulation.

Excise Tax Guide | Taxable Persons | ETGTP1 22
• if the Person does not sufficiently prove to the FTA that they are no longer
responsible for Due Tax,
• if less than 6 months have passed since the Person became registered for Excise
Tax.15
It should be noted that Tax deregistration does not preclude a Person from complying
with the provisions of the Excise Tax Decree-Law and Excise Tax Executive
Regulation, including filing another Tax Registration when the relevant conditions are
met.16



15 Article 7(1) of the Excise Tax Executive Regulation.
16 Article 6(8) of the Excise Tax Executive Regulation.

Excise Tax Guide | Taxable Persons | ETGTP1 23
6. Tax points
6.1. Chapter summary
The purpose of this chapter is to summarise the point at which Excise Tax is due to
be accounted for. This will be different depending on whether the Excise Goods are
imported into the UAE, or whether they are produced within the UAE. The Tax point
can also be affected by the use of Designated Zones.
In all cases, the date on which Excise Tax is due to be accounted for determines the
Excise Tax Return in which the related Excise Tax should be reported.
6.2. Imported Excise Goods
Where Excise Goods are imported into the UAE, Excise Tax is due to be accounted
for by the Importer at the date of import.17 The Excise Tax due should be included on
the Importer’s Excise Tax Return for the Tax Period covering the date of import.
Where Excise Goods are imported into the UAE but immediately placed in a
Designated Zone, the goods are not treated as being imported into the territory of the
UAE until the goods leave the Designated Zone and are released into free circulation
in the UAE. More details about the effect of entering Excise Goods into a Designated
Zone (including movements between Designated Zones) is covered in Chapter 9.
6.3. Excise Goods stockpiled in the UAE
Excise Goods are stockpiled in the UAE if they are:
• held in free circulation in the UAE, intended to be sold in the course of Business
and Excise Tax on those goods has not been paid, remitted, relieved or deferred,
and
• ‘excess’ Excise Goods.
Where Excise Goods are stockpiled, they become subject to Excise Tax on the date
they are acquired by the Stockpiler.18 In instances where a new product becomes
subject to Excise Tax, these stockpiled Excise Goods become subject to Excise Tax
on the date those goods become Excise Goods.
The term “excess” Excise Goods refers to Excise Goods:

17 Article 10(1) of the Excise Tax Decree-Law.
18 Article 10(2) of the Excise Tax Decree-Law.

Excise Tax Guide | Taxable Persons | ETGTP1 24
• which are owned by a Person on the date the Excise Tax Decree-Law comes in to
effect – this will include instances where the scope of Excise Goods is extended to
include a new type of Excise Good,
• which exceed the average monthly stock level of the Business, based on the
Person’s average monthly stock levels of that Excise Good. This is measured by
reference to the previous 12-month period prior to the date of extending the Excise
Tax scope to be applicable to a new type of Excise Good, and
• that are intended to be sold by the Person in the course of Business.19
In addition to the above, if the Person holds more than 2 months’ supply of Excise
Goods (i.e. more than 2-months average sales volume), whether or not it is normal for
the Business to hold such a level of stock, any stock in excess of 2 months’ supply
shall be considered excess Excise Goods.20 This is measured by reference to the
Person’s average monthly sales of Excise Goods, during the 12-month period prior to
the date the law’s scope is extended.
As a result of the above, where a Taxable Person has a normal stock of Excise Goods
on the date the law came into effect which do not qualify as excess Excise Goods, the
Taxable Person will not be required to account for Excise Tax on the Excise Goods
purchased. However, it should be noted that, where a Taxable Person has a normal
stock of Excise Goods on the date the law came into effect charges and charges
Excise Tax on the sale of such stock, then the Excise Tax charged needs to be
declared and paid to the FTA via the appropriate Excise Tax Return.
If excess Excise Goods are owned on the effective date of the extension of the scope
of Excise Goods, that Person is considered to be a Stockpiler and will be required to
be registered for Excise Tax. As part of the first Excise Tax Return filing following the
stockpiling event, the Stockpiler is required to complete and submit a stockpile
declaration, where all relevant details regarding the stockpiled Excise Goods must be
provided.
Similarly, the stockpiling rules within the Excise Tax legislation also apply to
circumstances where an increase in the Tax obligation arises. For example, where a
Person was holding a stock of tobacco products on 1 December 2019 (the date on
which the minimum price provisions for tobacco products came in to effect) which have
been subject to Excise Tax at a price below the minimum excise price which came into
effect on 1 December 2019, the Person had to consider whether they may qualify as
a Stockpiler in respect of the goods at the time.

19 Article 11(2) of the Excise Tax Executive Regulation.
20 Article 11(3) of the Excise Tax Executive Regulation.

Excise Tax Guide | Taxable Persons | ETGTP1 25
In such cases, Taxpayers are required to maintain and upon a request, provide audited
reports of stockpiled Excise Goods. Failure to maintain audited reports for stockpiled
Excise Goods may lead to the FTA considering the entire inventory as "excess,"
triggering full Excise Tax liability.
6.4. Excise Goods released for consumption in the UAE
In all cases other than above, Excise Tax will be due on Excise Goods on the date
they are released for consumption in the UAE.21
For these purposes “released for consumption” means:
• they are produced in free circulation (i.e. outside a Designated Zone), or
• they leave a Designated Zone and are released into free circulation.22
Excise Goods are regarded as leaving the Designated Zone if:
• The goods are removed from the Designated Zone (except where the goods are
moved to another Designated Zone and all the requirements are met to transfer
the goods under Customs suspension).
• The goods are consumed or acquired for consumption within a Designated Zone.
• There is an irregularity in the course of a transfer of the goods between Designated
Zones.
• The goods are found to be deficient or if there is a shortage in quantity from a
Designated Zone or during a transfer between Designated Zones.23
As an exception to the above, the release of Excise Goods for consumption is not
considered to have occurred if:
1. There is a deficiency or shortage in the Excise Goods in the Designated Zone, and
the Warehouse Keeper notifies the FTA within 30 days, with the shortage being
due to a justified cause accepted by the FTA, or
2. There is a natural shortage in the quantity of Excise Goods in the Designated Zone,
provided all of the following conditions are met:
o the shortage is as a result of the natural characteristics of the good and meets
the standards and controls specified by the FTA,
o the owner of the excise goods and the warehouse keeper notify the FTA of the
shortage resulting from natural characteristics, in accordance with the
procedures and mechanisms approved by the FTA in this regard, and

21 Article 10(3) of the Excise Tax Decree-Law.
22 Article 12(1) of the Excise Tax Executive Regulation.
23 Article 12(3) of the Excise Tax Executive Regulation. Refer to section 9.7 for more information

Excise Tax Guide | Taxable Persons | ETGTP1 26
o the owner of the excise goods and the warehouse keeper keep documents
proving the shortage resulting from the natural characteristics of the goods and
submit them to the FTA upon request.24
For more information on the standards, controls and procedures for dealing with a
shortage within a Designated Zone due to the natural characteristics of Excise Goods,
please refer to FTA Decision No. 6 of 2025 and the Excise Tax Public Clarification on
Natural Shortage of Excise Goods (EXTP011).
6.4.1. Production
Excise Goods shall be treated as produced at the date these goods are:
• ready to be held out for retail sale,
• fit for consumption or retail sale if the goods are not intended for retail sale, or
• ready to be sold to a retailer, if the goods are of the type which are not fit for
consumption until they are combined with another product at the point of retail sale,
for example, a concentrate used to produce a sweetened drink.25
In order to identify the Tax liability at the point of production of Excise Goods produced
outside a Designated Zone, the producer will be required to file a production
declaration at the end of every Tax Period.
The producer will be required to log in to the EmaraTax portal and complete the
production declaration covering the goods which were produced during the Tax
Period. The declaration will request certain information about the goods, e.g. the
brand, quantity, volume, product code etc.
In respect of Excise Goods for which Excise Tax is calculated as a percentage of the
Excise Price, using the standard price list published by the FTA, the declaration will
automatically calculate the Tax liability due on goods which have been produced
during that period. In the event that the designated retail sales price is higher than the
standard price list of Excise Goods published by the FTA, the Taxable Person should
self-declare the higher designated retail sales price and account for the respective Tax
due on the produced goods based on the designated retail sales price of the goods.
From 1 January 2026, the declaration will require the Taxable Person to specify the
quantity of sweetened drinks produced during the relevant Tax Period. The Tax liability
will be calculated using the quantity and the Tax rate applicable depending on the
existing categorisation of the sweetened drink based on the amount of sugar and other
sweeteners.

24 Article 12(5) of the Excise Tax Executive Regulation.
25 Article 12(2) of the Excise Tax Executive Regulation.

Excise Tax Guide | Taxable Persons | ETGTP1 27
If an Excise Good is not included on the standard price list, the Taxable Person should
request the FTA to add this product to the list first before it can be reported on the
declaration. Where it is known that a product is not available on the list, a request
should be made for it to be added to the list as soon as possible in order to avoid any
delays in filing the declaration.
To request for a new product to be added to the standard price list, a form via the
Product Registration Portal (also known as BrandSync) is required to be submitted,
which can be accessed via a link from the FTA’s portal. This will open a form that can
be completed with all of the product details and will then be considered by the FTA. In
order to support the request, the FTA will ask for evidence to be submitted to support
the selling price of the product within the market, for example copies of receipts
showing the product’s retail selling price.
The documents and information that need to be provided may include but are not
limited to:
• details of the product,
• details of the product ingredients,
• details of marketing materials,
• lab reports, and
• details about the product price.
Please note that the specific documents and information that will need to be provided
will depend on the category of Excise Good.
It should be noted that the supporting evidence may need to be periodically updated
in order to ensure the information in the products list remains up to date and accurately
reflects the current market selling price.
The information contained on the production declaration will be retained within the
FTA system, linked to the Taxable Person’s TRN and will be automatically populated
in the relevant Excise Tax Return.
Only one production declaration is required to be filed in respect of each Tax Period
in which goods are produced in free circulation, i.e. outside a Designated Zone.
For more information on declarations and the completion of the Excise Tax Return,
please refer to the Excise Tax User Guide – Returns which is available on the FTA’s
website.
6.4.2. Excise Goods leaving a Designated Zone
Excise Goods are regarded as leaving the Designated Zone when:

Excise Tax Guide | Taxable Persons | ETGTP1 28
• The goods are removed from the Designated Zone (except where the goods are
moved to another Designated Zones and all the requirements are met to transfer
the goods under Customs suspension).
• The goods are consumed or acquired for consumption within a Designated Zone.
• There is an irregularity in the course of a transfer of the goods between Designated
Zones.
• The goods are found to be deficient or if there is a shortage in quantity from a
Designated Zone or during a transfer between Designated Zones.26
It is important to note that Excise Goods are no longer considered as released for
consumption in cases of shortage due to natural characteristics, subject to meeting
specified requirements.27 For more information on circumstances in which natural
shortage may occur, please refer to the Excise Tax Public Clarification on Natural
Shortage of Excise Goods (EXTP011).
For more information on the Excise Tax treatment of goods removed from a
Designated Zone, please refer to section 9.7.



26 Article 12(3) of the Excise Tax Executive Regulation.
27 Article 12(5)(b) of the Amended Executive Regulation, read with FTA Decision No. 6 of 2025.

Excise Tax Guide | Taxable Persons | ETGTP1 29
7. Procedures on Import
7.1. Chapter Summary
The purpose of this chapter is to explain the practical procedures that an Importer of
Excise Goods is required to follow when importing Excise Goods.
7.2. Non-registered Importers
A Person who is not registered for Excise Tax (including Persons excepted from
registration - see section 5.3.2), is regarded as a non-registered Importer of Excise
Goods.
Such Persons importing Excise Goods will be required to log on to the EmaraTax
portal and complete an Import declaration covering the goods which are to be
imported. The declaration requires details about the goods, e.g. the brand, quantity,
volume, product code etc.
In respect of Excise Goods for which Excise Tax is calculated as a percentage of the
Excise Price, using the standard price list published by the FTA, the declaration will
automatically calculate the Tax liability due on the Import. In the event that the
designated retail sales price is higher than the standard price list of Excise Goods
published by the FTA, the Taxable Person should self-declare the higher designated
retail sales price and account for the respective Tax due on the imported goods based
on the designated retail sales price of the goods.
From 1 January 2026, the declaration will require the non-registered Importer to
specify the quantity of sweetened drinks imported during the relevant Tax Period. The
Tax liability will be calculated using the quantity and the Tax rate applicable depending
on the existing categorisation of the sweetened drink based on the amount of sugar
and other sweeteners.
In the event that an Excise Good is not available on this list, the Taxable Person should
request the FTA to add this product to the list before it can be reported in the
declaration.
The Importer will then be required to pay the Excise Tax due on the Import before
approaching the Customs Department. At the point of import, the Customs
Department will ask for the transaction ID provided at the point of payment and will
verify the Import declaration and the payment made. Once the Customs Department
has verified that all of the details are correct and the payment has been made, the
goods will be cleared and allowed to enter the UAE.

Excise Tax Guide | Taxable Persons | ETGTP1 30
For more information on the process to follow, kindly refer to EX201 – Import
Declaration for Non-Registered Importers – User Manual which is available on the
FTA’s website.
7.3. Registered Importers
A Taxable Person importing Excise Goods into the UAE will follow a similar procedure
as non-registered Importers, except that the Tax liability will not be payable at the point
of Import but will be payable as part of the normal Excise Tax Return process, i.e. by
the 15th day of the month following the end of the Tax Period in which the goods were
imported (or on the first working day following this date, if the date falls on a weekend
or public holiday).28
A Taxable Person will be required to log on to the EmaraTax portal and complete an
Import declaration covering the goods which are to be imported. The declaration will
request information about the goods, e.g. the brand, quantity, volume, product code
etc. For more information on the declarations, kindly refer to the Excise Tax User
Guide – Returns which is available on the FTA’s website.
In respect of Excise Goods for which Excise Tax is calculated as a percentage of the
Excise Price, using the standard price list published by the FTA, the declaration will
automatically calculate the Tax liability due on Import of the goods. In the event that
the designated retail sales price is higher than the standard price list of Excise Goods
published by the FTA, the Taxable Person should self-declare the higher designated
retail sales price and account for the respective Tax due on the imported goods based
on the designated retail sales price of the goods.
From 1 January 2026, the declaration will require the Taxable Person to specify the
quantity of sweetened drinks imported during the relevant Tax Period. The Tax liability
will be calculated using the quantity and the Tax rate applicable depending on the
existing categorisation of the sweetened drink based on the amount of sugar and other
sweeteners.
Where an Excise Good is not available on the standard price list, the Taxable Person
should request the FTA to add this product to the list first before it can be reported into
the declaration.
Taxable Persons will then be able to submit the Import declaration without having to
pay the related Excise Tax at the time of importation. A transaction ID will be provided
to the Taxable Person when the Import declaration is submitted. At the point of import,

28 Article 10(1) of the Excise Tax Decree-Law, read with Article 19(2) of the Excise Tax Executive
Regulation.

Excise Tax Guide | Taxable Persons | ETGTP1 31
the Customs Department will ask for the transaction ID and will verify the details of the
Import declaration. Once the Customs Department has verified that all of the details
are correct, the goods will be cleared and allowed to enter the UAE.
The information contained on the Import declaration will be retained within the FTA
system, linked to the Taxable Person’s TRN, and automatically populated in the
relevant Tax Return.
There is no limit to the number of Import declarations which an Importer is able to
submit in any given Tax Period. The Tax liability stated on all Import declarations
during a Tax Period will automatically be consolidated and reflected on the Tax Return.
The Tax liability due in respect of the imports is included with the Tax liability for the
Tax Return as a whole, and the Taxable Person can settle the payment no later than
the 15th day following the end of the monthly Tax Period (or on the first working day
following this date, if the date falls on a weekend or public holiday), representing their
entire Tax liability for the Tax Period.
For more information on the process to follow, kindly refer to EX201 – Import
Declaration for Registered Importers – User Manual which is available on the FTA’s
website.


Excise Tax Guide | Taxable Persons | ETGTP1 32
8. Local purchases by Taxable Persons
8.1. Chapter summary
The purpose of this chapter is to set out the reporting requirements for excise Taxable
Persons (i.e. Persons that are registered for Excise Tax purposes and hold a valid
TRN) in the case of local purchases of Excise Goods in the UAE in instances where
Excise Tax has already been paid.
8.2. Local purchase reporting requirements
Where a registered Taxable Person for Excise Tax purposes acquires Excise Goods
in the UAE on which Excise Tax has already been paid and the Person intends to
claim the Deductible Tax on export, or for use in production of other Excise Goods, an
Excise Tax local purchase form needs to be completed and submitted to the FTA.
A Taxable Person will be required to log on to the EmaraTax portal and complete a
local purchase form covering the goods which have been purchased (i.e. it is the
responsibility of the buyer of such goods to report them to the FTA). The form requires
specific information about the goods, e.g. the brand, quantity, volume, product code
etc. and the TRN of the seller of the goods, if applicable, as well as supporting
documentation (e.g. an invoice or receipt for the purchase).
In respect of Excise Goods for which Excise Tax is calculated as a percentage of the
Excise Price, using the standard price list published by the FTA, the form will
automatically populate the excise price of the goods purchased. If the excise price
paid for the goods is lower than the standard price list of Excise Goods published by
the FTA, the Taxable Person should self-declare the lower excise price.
From 1 January 2026, the declaration will require the Taxable Person to specify the
quantity of sweetened drinks purchased during the relevant Tax Period. The Excise
Tax on the purchased goods will be calculated using the quantity and the tax rate
applicable depending on the existing categorisation of the sweetened drink based on
the amount of sugar and other sweeteners.
The completion and submission of this form will not lead to any additional Tax liability
for the purchaser or the seller of the Excise Goods. It is only for reporting purposes
and is used to provide evidence of payment of Excise Tax in the case of future
requests to deduct Excise Tax paid on the goods.


Excise Tax Guide | Taxable Persons | ETGTP1 33
It is the responsibility of the purchaser of the goods to submit one local purchase form
for every acquisition made where they intend to claim the Deductible Tax on Export or
for use in production of other Excise Goods at a later date. There is no limit to the
number of local purchase forms which a Taxable Person is able to submit in any given
Tax Period.
For every local purchase form that is completed and submitted, the purchaser can also
separately submit a deductible declaration via which any Deductible Tax can be
claimed in the respective Tax Period. For further details regarding the Deductible Tax
and the applicable declaration, please refer to Chapter 10.


Excise Tax Guide | Taxable Persons | ETGTP1 34
9. Designated Zones
9.1. Chapter summary
The purpose of this chapter is to set out the rules which apply to the use of Designated
Zones, also known as excise warehouses, and their implications on accounting for
Excise Tax within the UAE.
9.2. Definition of a Designated Zone
A Designated Zone is defined as either:
• Designated Zone Type A - being the territory of a free zone, fenced to restrict
access to and from the site, under the control of the Customs Department and
supervised by an appointed Warehouse Keeper, or
• Designated Zone Type B - any other area approved by the FTA as a Designated
Zone. This can be part of the territory of a free zone where the whole free zone is
not registered as a Designated Zone, which has security measures in place to
restrict entry and exit. In practice, areas will be approved by the FTA in the course
of registering the appointed Warehouse Keeper or following the completion of the
registration of the appointed Warehouse Keeper.29
9.3. Implications of using a Designated Zone
Goods entering the UAE which are immediately moved to a Designated Zone are not
treated as imported into the UAE at that time. Furthermore, Excise Goods stored,
preserved or processed in a Designated Zone as well as goods transferred between
Designated Zones are not regarded as being released for consumption, provided
certain requirements are met.30 In these instances, the Tax point is only triggered when
the Excise Goods are released from a Designated Zone for consumption in the UAE.
Effectively, the excise Tax liability is suspended until the goods are removed from the
Designated Zone.
Excise Goods within a Designated Zone shall be treated as if they are outside such
zone and within the UAE, if the Designated Zone changes its operating mechanism or
violates any of the conditions upon which it was specified as a Designated Zone.31


29 Article 15(2) of the Excise Tax Executive Regulation.
30 Article 15(1) of the Excise Tax Executive Regulation.
31 Article 15(5) of the Excise Tax Executive Regulation.

Excise Tax Guide | Taxable Persons | ETGTP1 35
9.4. Warehouse Keepers
Every Designated Zone in the UAE shall have an appointed Warehouse Keeper who
is responsible for overseeing the operation of the Designated Zone and ensuring the
conditions and security imposed over the Designated Zone are maintained.
A Warehouse Keeper must apply to the FTA to be authorised to oversee a Designated
Zone. Further details regarding the registration process for Warehouse Keepers are
covered in section 5.4.
A producer or Importer may also apply to be a Warehouse Keeper if they wish.
9.4.1. Responsibilities of the Warehouse Keeper
The Warehouse Keeper responsible for the Designated Zone is required to control
and supervise the Designated Zone, as well as goods which are transferred from the
Designated Zone under Tax suspension.32 In order to fulfil this requirement, the
Warehouse Keeper will be required to keep certain records in order to demonstrate to
the FTA the stock levels of the Designated Zone in terms of the Excise Goods stored
within it which have not had Excise Tax paid on them. These records will include:
• the stock levels of Excise Goods within the Designated Zone at any given point in
time,
• the value and quantity of Excise Goods entered in to the Designated Zone,
• the value and quantity of Excise Goods leaving the Designated Zone and released
for consumption,
• the value and quantity of Excise Goods transferred to another Designated Zone,
including the details of the Designated Zone to which they are transferred,
• the value and quantity of Excise Goods transferred from the Designated Zone for
export,
• the value and quantity of Excise Goods produced within the Designated Zone,
• the value and quantity of Excise Goods subject to deficiency or shortage and that
which was or will be destroyed.33
The Warehouse Keeper will also be required to issue a movement document which
will accompany Excise Goods which are transferred from the Designated Zone to
another Designated Zone, or for export. The document must contain the following
information:
• the type of Excise Goods transferred,
• the quantity and excise price of the goods transferred,

32 Article 15(6) of the Excise Tax Executive Regulation.
33 Article 15(9) of the Excise Tax Executive Regulation.

Excise Tax Guide | Taxable Persons | ETGTP1 36
• the value of Excise Tax due in the event the Excise Goods are released for
consumption during the transfer, and
• the Designated Zone registration number to which the Excise Goods will be
transferred and the name of the Warehouse Keeper responsible for that other
Designated Zone.
There are also certain situations where a Warehouse Keeper will need to confirm
movements of Excise Goods that have either been entered or removed from the
Designated Zones that they are responsible for. It is the responsibility of the owner of
the Excise Goods (i.e. the Excise Tax registered Taxable Person) to report such
movements of Excise Goods using the relevant declarations. However, the
Warehouse Keeper will have to confirm all such movements. For example, where
Excise Goods are being transferred from Designated Zone X to Designated Zone Y,
the following actions need to be performed:
• The Taxable Person who is the owner of the Excise Goods stored in Designated
Zone X will need to report the movement of the Excise Goods from Designated
Zone X to Designated Zone Y and issue a declaration which contains the following
particulars:
o the type of Excise Goods to be transferred,
o the quantity and value of Excise Goods to be transferred,
o the value of Excise Tax in the event the Excise Goods were released for
consumption in the course of the transfer to another Designated Zone, and
o the details of the Designated Zone to which the Excise Goods will be transferred
and the Warehouse Keeper responsible for it.34
• The Warehouse Keeper who is responsible for Designated Zone X will need to
accept this movement (i.e. confirm that the goods reported by the Taxable Person
have left Designated Zone X), and
• The Warehouse Keeper who is responsible for Designated Zone Y will need to
accept this movement (i.e. confirm that the goods reported by the Taxable Person
have entered Designated Zone Y).
It should be noted that, unless the confirmations from both Warehouse Keeper(s) are
made successfully, the declarations may not be received by the FTA and will,
therefore, not be pre-populated on the relevant Excise Tax Returns. The onus is on
the relevant parties to report such transfers to ensure that all the relevant supporting
documents are obtained and retained, and that all the required declarations are
submitted to the FTA within the prescribed timelines.

34 Article 15(11) of the Excise Tax Executive Regulation.

Excise Tax Guide | Taxable Persons | ETGTP1 37
For more information on the relevant declarations which should be submitted by the
different parties, please refer to the Excise Tax User Guide – Returns which is
available on the FTA’s website.
9.5. Goods entering a Designated Zone
Prior to operating a Designated Zone, the Warehouse Keeper will be required to
submit a financial guarantee against Excise Tax that may accrue in respect of the
Excise Goods in the Designated Zone. The financial guarantee may be liquidated by
the FTA in the event that Excise Goods are released for consumption without payment
of the Tax due, by the Person responsible for releasing the goods. For more
information on the calculation of financial guarantees, please refer to the Excise Tax
Public Clarification on Excise Tax Designated Zones – Calculation of Financial
Guarantees (EXTP008).
As noted in section 9.4, where Excise Goods enter a Designated Zone, the responsible
Warehouse Keeper is required to document the entry of the goods in to the Designated
Zone and also confirm that the respective declarations are filed by the Taxable Person.
Further details regarding Designated Zones and the respective declarations that need
to be used can be found in section 9.8 and the Excise Tax User Guide – Returns,
available on the FTA’s website.
9.6. Transfer of goods from a Designated Zone
It is possible to transfer Excise Goods between Designated Zones, or from a
Designated Zone for export, without the goods being considered released into free
circulation in the UAE, provided certain conditions are met. This is normally referred
to as “Tax suspension”.
Where goods are transferred under Tax suspension, they must not be released for
consumption during the transfer, or be in any way used or altered during the transfer.
Every Person appointed as a Warehouse Keeper must control and supervise the
Designated Zone and the transfer of Excise Goods to another Designated Zone
without release for consumption, in accordance with the following conditions:
• keep records of Excise Goods held in the Designated Zone at any time,
• keep evidence of Excise Goods being intended for transfer to another Designated
Zone without release for consumption, and
• any such other records as the FTA may specify to be kept in respect of each
Designated Zone supervised by the Warehouse Keeper.35

35 Article 15(6) of the Excise Tax Executive Regulation.

Excise Tax Guide | Taxable Persons | ETGTP1 38
Goods will be considered released for consumption during a transfer between
Designated Zones or for Export where they are:
• consumed during the transfer,
• they are found to be deficient or missing during the transfer, or
• there is an irregularity in the course of the transfer, i.e. the rules governing the
transfer of Excise Goods are not adhered to.
As an exception to the above, Excise Goods will not be considered released for
consumption (and will, therefore, not be subject to Excise Tax) where they are found
to be deficient or missing during the transfer if:
• The responsible Warehouse Keeper notifies the FTA within 30 days of discovering
that the Excise Goods are deficient or missing. This notification, in practice, should
be made by the excise Taxable Person who is the owner of the Excise Goods and
who needs to submit to the FTA details of the deficiency or shortage in the goods
by submitting the lost and damaged goods declaration.
• The owner of the Excise Goods and the Warehouse Keeper notify the FTA of the
shortage resulting from natural characteristics, subject to meeting specified
requirements.36
For more information on the standards, controls and procedures for dealing with a
shortage within a Designated Zone due to the natural characteristics of Excise Goods,
please refer to FTA Decision No. 6 of 2025 and the Excise Tax Public Clarification on
Natural Shortage of Excise Goods (EXTP011).
The FTA has the discretion to decide what it considers to be an acceptable legitimate
cause. For more information, please refer to the Excise Tax Public Clarification on
Excise Goods which are Deficient or Missing and the Process for the Destruction of
Excise Goods within a Designated Zone (EXTP007).
The Warehouse Keeper can then destroy the goods after a period of 30 days following
the notification of the deficient goods to the FTA. If during that 30-day period, the FTA
gives notice to the Warehouse Keeper (in practice this notification will be
communicated to the owner of the goods who would need to notify the Warehouse
Keeper) that the FTA intends to inspect the goods then the Warehouse Keeper must
keep the goods until the FTA has completed its inspection and given permission for
the goods to be destroyed. The Warehouse Keeper can destroy the goods prior to the
end of the 30-day period following notification to the FTA, if the FTA confirms that the
goods may be destroyed.37

36 Article 12(5) of the Excise Tax Executive Regulation.
37 Article 12(6), (7) and (8) of the Excise Tax Executive Regulation.

Excise Tax Guide | Taxable Persons | ETGTP1 39
9.6.1. Procedures to be followed during a transfer from a Designated Zone
The Warehouse Keeper of the original Designated Zone remains responsible for
ensuring the goods are not released for consumption during the Designated Zone
transfer, until they are received by the Warehouse Keeper of the receiving Designated
Zone.
In practice, this means that the financial guarantee lodged by the Warehouse Keeper
in respect of the Designated Zone shall cover the Excise Goods during the transfer to
the receiving Designated Zone.
Where goods are transferred between Designated Zones, the following procedures
must be followed:
• The Warehouse Keeper of the originating Designated Zone must issue a
movement document in respect of the Excise Goods.
• The movement document must accompany the goods during the transfer, and
• The Warehouse Keeper of the receiving Designated Zone must confirm receipt
and acceptance of the Excise Goods.38
The movement document must include the particulars mentioned in section 9.4.1.
A copy of the movement document must be kept by both the Warehouse Keeper and
the Taxable Person. The movement document does not need to be submitted to the
FTA at the point of the transfer, however a copy should be provided to the FTA if it
requests one.
In addition, the Taxable Person who is the owner of the goods needs to file a
Designated Zone reporting declaration for the movement of the goods from one
Designated Zone to another, regarding the goods that will be transferred. The
Warehouse Keeper of both the original Designated Zone and the receiving Designated
Zone need to confirm this declaration, in order to finalise the release of the goods from
the original Designated Zone and their subsequent receipt into the receiving
Designated Zone. For more details in relation to the declaration required to be filed,
please refer to section 9.8 and the Excise Tax User Guide – Returns which is available
on the FTA’s website.
9.7. Removal from a Designated Zone
As mentioned above, a Tax point will be triggered when Excise Goods are removed
from a Designated Zone and entered into free circulation in the UAE. The point at

38 Article 15(11) of the Excise Tax Executive Regulation.

Excise Tax Guide | Taxable Persons | ETGTP1 40
which Excise Goods are taken to be removed from a Designated Zone will be the
earlier of the date on which these goods:
• physically leave a Designated Zone,
• are consumed, or
• are found to be deficient or missing from a Designated Zone.
Where Excise Goods are found to be deficient or missing from a Designated Zone,
they will not become subject to Excise Tax where the responsible Warehouse Keeper
notifies the FTA within 30 days (via the excise Taxable Person who is the owner of the
goods, i.e. by submitting a lost and damaged declaration), and the FTA is satisfied that
the loss or deficiency is due to a legitimate cause.
The Warehouse Keeper should destroy the damaged goods after 30 days from
notifying the FTA of the deficient goods. If during that 30-day period, the FTA gives
notice to the Warehouse Keeper that the FTA wants to inspect the goods, then the
Warehouse Keeper must keep the goods until the FTA has completed its inspection
and given permission for the goods to be destroyed. The Warehouse Keeper can
destroy the goods prior to the end of the 30-day period following notification to the
FTA, if the FTA confirms that the goods may be destroyed.39 The FTA can request the
applicant to also submit a destruction certificate issued by the municipality or other
relevant authority overseeing the destruction.
A Tax point will not be triggered for Excise Tax purposes where goods physically leave
a Designated Zone and are immediately exported to a place outside the UAE, i.e. they
are never released into free circulation in the UAE. The Taxable Person will need to
file a Designated Zone reporting declaration which would detail the Export of the goods
outside the UAE. The following conditions have to be met:
• The Warehouse Keeper of the Designated Zone from which the Excise Goods
originate shall remain responsible for the goods until they are exported.
• The Person who is responsible for transferring the Excise Goods must be either a
Taxable Person or a Warehouse Keeper of the sending Designated Zone.
• If the Taxable Person is transporting the Excise Goods, that Person must obtain
prior consent from the Warehouse Keeper to transport these goods. The
Warehouse Keeper may refuse to grant such consent.
• The Warehouse Keeper must retain copies of all approvals granted to Taxable
Persons to transport Excise Goods.40
Where Excise Goods enter a Designated Zone, the responsible Warehouse Keeper
and the Taxable Person owning the goods should follow the procedures determined

39 Article 12(6), (7) and (8) of the Excise Tax Executive Regulation.
40 Article 15(12) of the Excise Tax Executive Regulation.

Excise Tax Guide | Taxable Persons | ETGTP1 41
by the FTA which are to apply within that warehouse. Further details of the
declarations that need to be filed when transferring goods between Designated Zones
can be found in section 9.8 and the Excise Tax User Guide – Returns which is
available on the FTA website.
Where Excise Goods are removed from a Designated Zone and released for free
circulation or consumption in the UAE, the Tax due in respect of the Excise Goods
should be accounted for by the Taxable Person in the Tax Return covering the period
in which the goods were removed.
9.8. Designated Zone reporting
Any Taxable Person who owns goods within a Designated Zone must prepare and
submit the required declarations for each Tax Period. Such declarations will require
the Taxable Person to declare, amongst other, the Excise Goods which have been:
• entered into a Designated Zone,
• released for free circulation in the UAE from a Designated Zone,
• transferred to another Designated Zone,
• exported from a Designated Zone to outside of the UAE,
• consumed within a Designated Zone,
• produced within a Designated Zone,
• sold or ownership has been transferred within a Designated Zone, or
• lost and damaged.
For more information on the relevant declarations which should be submitted by the
different parties, please refer to the Excise Tax User Guide – Returns which is
available on the FTA’s website.
9.8.1. Scenarios for Designated Zone reporting requirements
If you are… …and you… …then… Declaration
a registered
Taxable Person
for Excise Tax
purposes,
enter goods in a
Designated
Zone, where
Excise Tax has
already been
paid,
claim a deduction for
the Excise Tax that
has already been
paid.
Designated Zone
Reporting
Declaration EX202A
(Enter goods into a
Designated Zone)
and select the
respective
import/producer/local
purchase/stockpile

Excise Tax Guide | Taxable Persons | ETGTP1 42
If you are… …and you… …then… Declaration
or other declaration
form
a registered
Taxable Person
for Excise Tax
purposes,
enter goods in a
Designated
Zone, where
Excise Tax has
not been
previously paid
on the goods,
i.e. you Import
directly
/produce in a
Designated
Zone without a
Customs check,
submit either
• a Designated
Zone Reporting
Declaration
(select “Import to
Designated Zones
(where there is no
customs check)”)
OR
• a Designated
Zone Reporting
Declaration
(select
“Production within
a Designated
Zone”).
Designated Zone
Reporting
Declaration EX202A
(Import to
Designated Zones
where there is no
customs check)
OR
Designated Zone
Reporting
Declaration EX202A
(Production within a
Designated Zone).
Note that the
declaration relating
to production within
a Designated Zone
can be filed multiple
times during a Tax
Period and is not
limited to one per
Tax Period. As a
result, it is
recommended to file
this declaration daily
in circumstances
where production is
ongoing in a
Designated Zone, in
order to avoid error
messages on other
declarations
regarding the
volume of stock

Excise Tax Guide | Taxable Persons | ETGTP1 43
If you are… …and you… …then… Declaration
available within the
Designated Zone.
a registered
Taxable Person
for Excise Tax
purposes,
release goods
into free
circulation from
a Designated
Zone where
there is a check
by the Customs
Department,
• submit a
declaration form
at the point the
goods are
released from the
Designated Zone,
and
• Pay the Excise
Tax due via the
Excise Tax
Return.
Import Declaration
EX201 (Excise
Goods that require
Customs Clearance)
a registered
Taxable Person
for Excise Tax
purposes,
release goods
into free
circulation from
a Designated
Zone where
there is not a
check by the
Customs
Department,
• submit a
declaration form
at the point the
goods are
released from the
Designated Zone,
and
• pay the Excise
Tax due via
Excise Tax
Return.
Designated Zone
Reporting
Declaration EX202A
(Release goods from
Designated Zone
into free circulation)
a registered
Taxable Person
for Excise Tax
purposes,
transfer goods
from one
Designated
Zone to another
Designated
Zone where
both
Designated
Zones do not
require a check
from the
submit a declaration
form to report the
goods transferred.
Designated Zone
Reporting
Declaration EX202A
(Transfer goods to
another Designated
Zone)

Excise Tax Guide | Taxable Persons | ETGTP1 44
If you are… …and you… …then… Declaration
Customs
department,
a registered
Taxable Person
for Excise Tax
purposes,
transfer goods
from one
Designated
Zone to another
Designated
Zone where
both
Designated
Zones require a
check from the
Customs
department,
• submit an Import
declaration at the
point the goods
are released from
the Designated
Zone,
• declare the Excise
Tax due at the
point of filing the
Excise Tax
Return,
• submit a
Designated Zone
Reporting
Declaration
(select “Enter
goods into a
Designated
Zone”), and
• select the
respective Import
declaration.
The Tax originally
paid or declared is
deducted from the
Excise Tax liability in
the Excise Tax
Return for the period
during which the
goods were entered
in to the Designated
Zone.
If both the Import and
subsequent entry to
Import Declaration
EX201 “Excise
Goods that require
Customs Clearance”
Designated Zone
Reporting
Declaration EX202A
(Enter goods into a
Designated Zone)

Excise Tax Guide | Taxable Persons | ETGTP1 45
If you are… …and you… …then… Declaration
the Designated Zone
occur in the same
Tax Period, the net
effect on the Excise
Tax Return may be
neutral (assuming the
same goods and
quantities have been
imported and
subsequently entered
into the Designated
Zone).
a registered
Taxable Person
for Excise Tax
purposes,
transfer goods
from one
Designated
Zone where a
check from the
Customs
department is
required to
another
Designated
Zone where a
check from the
Customs
department is
not required,
• submit an Import
declaration at the
point the goods
are released from
the Designated
Zone,
• declare the Excise
Tax due via
Excise Tax
Return,
• submit a
Designated Zone
reporting
declaration (select
“Enter goods into
a Designated
Zone”), and
• select the
respective Import
declaration.
The Tax originally
paid or declared is
deducted from the
Excise Tax liability in
Import Declaration
EX201 found under
“Excise Goods that
require Customs
Clearance”
Designated Zone
Reporting
Declaration EX202A
(Enter goods into a
Designated Zone)

Excise Tax Guide | Taxable Persons | ETGTP1 46
If you are… …and you… …then… Declaration
the Excise Tax
Return for the period
during which the
goods were entered
in to the Designated
Zone.
If both the Import and
subsequent entry to
the Designated Zone
occur in the same
Tax Period, the net
effect on the Excise
Tax Return maybe
neutral (assuming the
same goods and
quantities have been
imported and
subsequently entered
to the Designated
Zone).
a registered
Taxable Person
for Excise Tax
purposes,
exported goods
from the
Designated
Zone to outside
of the UAE,
submit the
declaration to report
the goods exported
from the Designated
Zone.
Designated Zone
Reporting
Declaration EX202A
(Transfer goods for
export)
a registered
Taxable Person
for Excise Tax
purposes,
consumed
Excise Goods
within the
Designated
Zone,
• submit a
declaration when
the goods are
consumed, and
• pay the Excise
Tax due via the
Excise Tax return.
Designated Zone
Reporting
Declaration EX202A
(Consumption of
goods within
Designated Zone)
a registered
Taxable Person
for Excise Tax
purposes,
sold /
transferred
ownership
within the
submit a declaration
to report the transfer
of ownership by
Inventory - EX203C -
transfer of
ownership within
Designated Zones

Excise Tax Guide | Taxable Persons | ETGTP1 47
If you are… …and you… …then… Declaration
Designated
Zone
submitting the
relevant declaration.
a registered
Taxable Person
for Excise Tax
purposes,
have lost or
damaged
goods,
submit a declaration
to report any lost or
damaged goods
within 30 days of
discovery the lost or
deficiency of Excise
Goods.
Inventory – EX203B
– Lost and damaged

Note: As part of this
process, the FTA
can request you to
submit a Destruction
Certificate.
The Taxable Person will be required to log on to the EmaraTax portal and complete
the respective declarations required covering the scenarios indicated above. The
declarations will request certain information about the goods, e.g. the brand, quantity,
volume, product code etc.
The information contained on the declarations will be retained within the FTA system,
will be linked to the Taxable Person’s TRN, and be automatically populated in the
return, where applicable.
For more detailed guidance regarding the Designated Zone related scenarios and the
declarations that need to be filed by taxpayers, please refer to the FTA website and
the respective guidance.



Excise Tax Guide | Taxable Persons | ETGTP1 48
10. Deductible Excise Tax
10.1. Chapter Summary
The purpose of this chapter is to explain the circumstances which allow Taxable
Persons to deduct Excise Tax which has previously been paid.
10.2. What is Deductible Tax?
Deductible Tax is Excise Tax which has previously been paid on Excise Goods, which
may be deducted from the due Excise Tax for a Tax Period, hence, reducing the
payable Excise Tax for that Tax Period.
A Taxable Person is considered to have paid the Tax in the following two cases:
• when purchasing goods that were subject to Tax and on which the Tax has been
paid, or
• where the right to deduct Tax arises in the same Tax Period for which the Tax is
due.41
Deductible Tax consists of the following:
• Excise Tax paid on Excise Goods, which are subsequently exported to a place
outside the UAE.
• Excise Tax paid on Excise Goods, which subsequently become a component or
part of another Excise Good that is itself subject to Excise Tax.
• Excise Tax paid on Excise Goods that have not been sold, in cases where the rate
or amount of Excise Tax imposed applicable on such Good has been reduced, and
to the extent of such reduction.
• Excise Tax paid on Excise Goods in any other cases determined by the FTA and
in accordance with the controls it establishes.42
The value of the Deductible Tax shall be equal to the value of the Excise Tax
previously paid on the relevant goods, or the difference in Tax that was paid, and the
Taxable Person is required to retain evidence to prove the amount of Tax previously
paid. If the Excise Tax was paid by another party in the supply chain, the Taxable
Person is required to obtain and retain all of the following in order to be eligible for
claiming the deduction:
• a copy of the purchase invoice for the Excise Goods,
• a declaration from the supplier stating that he paid the Tax and confirming the value
thereof, and

41 Article 16(8) of the Excise Tax Executive Regulation.
42 Article 16(1) of the Excise Tax Decree-Law.

Excise Tax Guide | Taxable Persons | ETGTP1 49
• information which demonstrates to the satisfaction of the FTA that the Excise
Goods which are the subject of the claim are the same Excise Goods on which Tax
was paid. This may include, for example, serial numbers of the goods or any other
manner of identifying the specific good and providing a clear audit trail to prove
that Excise Tax was paid in respect of that specific good.43
Example:
ABC Co. imports raw tobacco and pays Excise Tax on the tobacco of AED 1,000.
ABC Co. then uses the tobacco to produce cigarettes for sale to the public for
AED 13,000.
The cigarettes are a new Excise Good and are subject to Excise Tax at the point they
are produced, i.e. when they are ready to be held out for retail sale. Excise Tax will be
due based on their designated retail selling price. Consequently, ABC Co. must pay
Excise Tax of AED 13,000 on the cigarettes.
As ABC Co. has used the tobacco to produce a new Excise Good which is subject to
Excise Tax, it may deduct the AED 1,000 Excise Tax previously paid on the tobacco
in its Excise Tax return.
When completing its Excise Tax return, ABC Co. will declare AED 13,000 of Excise
Tax and will be entitled to deduct AED 1,000 of Excise Tax previously paid on the
tobacco. ABC Co’s net Excise Tax liability due to the FTA is, therefore, AED 12,000
for that Tax Period.
In the case of drinks, it should be noted that, where any Excise Goods have previously
been subject to Excise Tax in the UAE, the beverage produced by combining that
Excise Good with the other products at the selling place by a non-Taxable Person
shall not be considered an Excise Good and no further Excise Tax shall be due on it.
In such cases, the Excise Tax paid on such Excise Goods cannot be considered as
deductible or Refundable Tax.
10.3. Tax Period in which Tax may be deducted
Deductible Tax can be included on the Excise Tax return for the period in which the
event which gave rise to deduction occurred, or the Excise Tax return for the
subsequent Tax Period.44


43 Article 16(4) of the Excise Tax Executive Regulation.
44 Article 16(1) of the Excise Tax Executive Regulation.

Excise Tax Guide | Taxable Persons | ETGTP1 50
The Taxable Person shall provide evidence to support the event which gave rise to
the deduction, e.g. Official and Commercial Evidence for the Export of the Excise
Goods.45
In the event that the value of Deductible Tax exceeds the Excise Tax payable per the
Taxable Person’s Excise Tax return, the Taxable Person will be required to follow the
procedure set out in section 10.4 to obtain a refund of Excise Tax paid.
10.4. How to claim Deductible Tax?
Where a Taxable Person is entitled to Deductible Tax, he will be required to complete
a Deductible Tax declaration at the end of the Tax Period in which the right to deduct
the Tax arose, or the subsequent Tax Period. This declaration should be submitted
before the submission of the relevant Excise Tax return.
The Deductible Tax declaration requires details of the Excise Goods in respect of
which the Person is entitled to claim credit, and the reason why that credit has arisen.
In certain cases, the Taxable Person will also be required to upload evidence of
entitlement to the credit, e.g. Official and Commercial Evidence that goods have left
the UAE in the case of Export.
The Taxable Person will be required to log on to the EmaraTax portal and complete
the deductible declaration. The declaration will request certain information about the
goods, e.g. the brand, quantity, volume, product code etc.
In respect of Excise Goods for which Excise Tax is calculated as a percentage of the
Excise Price, using the standard price list published by the FTA, or the price originally
declared at the time of Import or production or local purchase (depending on the
original declaration / form), the declaration will automatically calculate the Deductible
Tax due to the Taxable Person, which will be based on the Excise Tax originally paid.
From 1 January 2026, the declaration will require the Taxable Person to state the
original declaration number in which the quantity of sweetened drinks produced,
imported or locally purchased was reported. The declaration will automatically
calculate the Deductible Tax due to the Taxable Person, which will be based on the
Excise Tax originally paid.
The information contained on the deductible declaration will be retained within the FTA
system and will be linked to the Taxable Person’s TRN, and will be automatically
populated in the return.

45 Article 16(3) of the Excise Tax Executive Regulation.

Excise Tax Guide | Taxable Persons | ETGTP1 51
Only one deductible declaration (EX203 – Deductible Excise Tax Form) should be filed
in respect of each Tax Period, and may only be filed when the Taxable Person is
entitled to a deduction of Excise Tax.
For more information on the declaration, please refer to the Excise Tax User Guide –
Returns which is available on the FTA’s website.




Excise Tax Guide | Taxable Persons | ETGTP1 52
11. Excise Tax returns and payments
11.1. Chapter summary
The purpose of this chapter is to provide an overview of the Excise Tax return filing
requirements and payment deadlines, as well as to summarise the refund process
where a Taxable Person has excess Refundable Tax.
11.2. Excise Tax returns
Every Taxable Person is required to file an Excise Tax return summarising the Excise
Tax due to the FTA for the Tax Period.
The standard Tax Period is one calendar month. A longer Tax Period may be agreed
directly with the FTA in certain circumstances or may be imposed by the FTA.46
The due date for filing the Excise Tax return is no later than the 15th day of the calendar
month following the end of the Tax Period (or on the first working day following this
date, if the date falls on a weekend or public holiday). The Excise Tax return is required
to be submitted online to the FTA.47
The declarations which the Taxable Person was required to file during the course of
the Tax Period (in respect of imports, produced goods, Designated Zone movements
including goods entered into, released from, transferred within, consumed and
exported from Designated Zones, Deductible Tax due, local purchases of Excise
Goods, transfer of ownership of goods within Designated Zones and lost and damaged
goods) will automatically populate the expected Tax liability on the Excise Tax Return.
The Taxable Person is responsible to verify that the values in each box are correct.
Where the Taxable Person believes a pre-populated value in the Excise Tax return is
incorrect, they should first confirm whether they have already filed all of the required
declarations which are aggregated to determine the Tax liability. If they have correctly
completed all declarations and still believe there to be an error in the way the Tax
liability has been calculated, the Taxable Person should contact the FTA.
11.3. Excise Tax payments
The Taxable Person is responsible for accounting for and paying the Excise Tax due
to the FTA.

46 Article 17 of the Excise Tax Executive Regulation.
47 Article 18 of the Excise Tax Executive Regulation.

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The payment due to the FTA shall be due on the 15th day of the month following the
end of the Tax Period (or on the first working day following this date, if the date falls
on a weekend or public holiday).48
Persons that are excepted from registering for Excise Tax are required to pay the
relevant Excise Tax when importing Excise Goods. Customs will not release such
goods until proof of payment of the related Excise Tax is provided.
Note that, any Person that received an amount as Excise Tax or issues an invoice
reflecting the imposition of Excise Tax shall be required to pay such amount to the
FTA as Due Tax.49
Payment can be submitted via credit card or bank transfer (GIBAN). For further
information on the payment methods, please refer to the guidance available on the
FTA website.
11.4. Excess Refundable Tax
Where the value of a Taxable Person’s Deductible Tax exceeds the value of Excise
Tax payable to the FTA, the Person is regarded as having paid excess Tax which may
be refundable.
The Taxable Person is required to carry forward the excess Refundable Tax and offset
it against his Excise Tax liability payable to the FTA in future Tax Periods until the
excess Refundable Tax has been fully utilised.50
If, after the Tax has been carried forward for two Tax Periods, and the Taxable Person
still has excess Refundable Tax remaining, the Person may apply to the FTA for a
refund of the excess Refundable Tax.51
Where the Taxable Person submits a refund request of excess Refundable Tax, the
FTA will repay the money to the Taxable Person by the later of:
• two calendar months following submission of the refund request, or
• where the FTA undertakes a Tax Audit to verify the validity of the refund request,
within 21 calendar days of completion of the audit.52
The FTA has the discretion to refund the excess Refundable Tax after a period less
than two Tax Periods in the following cases:
• the Taxable Person’s Excise Tax registration is cancelled, or

48 Article 19 of the Excise Tax Executive Regulation.
49 Article 19(3) of the Excise Tax Decree-Law.
50 Article 20(1) of the Excise Tax Decree-Law.
51 Article 21 of the Excise Tax Executive Regulation.
52 Article 21(3) of the Excise Tax Executive Regulation.

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• the FTA is satisfied that the Taxable Person will undertake taxable activities in the
future, but is likely to have excess Refundable Tax for a period of at least 1 year.53
The FTA may withhold refunds where a Taxable Person failed to submit an Excise
Tax Return for any Tax Period until the Person submitted all outstanding Excise Tax
Returns.54
11.5. Errors in an Excise Tax Return
Where a Taxable Person becomes aware of an error or omission in an Excise Tax
return, Tax assessment or refund application, depending on the scenario, he should
or may notify the FTA of the error. This notification is made by submitting a Voluntary
Disclosure to the FTA.
In general, the relevant cases would be:
Undercalculation of Payable Tax
The following rules apply where a Tax Return submitted by a Taxable Person to the
FTA, or a Tax assessment issued by the FTA, resulted in an undercalculation of the
Payable Tax.
• If the undercalculation of Payable Tax exceeds AED 10,000, a Voluntary
Disclosure must be submitted within 20 Business Days of becoming aware of the
error.
• If the undercalculation is AED 10,000 or less, the following rules apply:
o If the Taxable Person is required to submit a Tax Return, the error must be
corrected in the earlier of:
▪ the Tax Return that has not become due for submission for a previous Tax
Period, or
▪ the Tax Return for the Tax Period in which the error was discovered.
o If there is no Tax Return through which the error can be corrected, a Voluntary
Disclosure must be submitted within 20 Business Days of becoming aware of
the error.
Overcalculation of Tax refund
The following rules apply where a Taxable Person submits a Tax refund application
resulting in an overcalculation of the refund he is entitled to:
• If the error was due to an error in the Tax refund application, a Voluntary Disclosure
must be submitted within 20 Business Days of becoming aware of the error.

53 Article 21(5) of the Excise Tax Executive Regulation.
54 Article 21(6) of the Excise Tax Executive Regulation.

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• If the error was due to an incorrect Tax Return or Tax assessment, the rules
applicable to an undercalculation of Payable Tax shall apply.
Error or omission in Tax Return without difference in Due Tax
Where a Taxable Person becomes aware of an error or omission in a submitted Tax
Return, without a resulting difference in the Due Tax, the error must be corrected or a
Voluntary Disclosure must be submitted to the FTA. For more information on the list
of cases of error or omission in the Tax Return which require the Taxable Person to
submit a Voluntary Disclosure to correct the error or omission, please refer to FTA
Decision No. 8 of 2024.
Voluntary Disclosure forms can be accessed and submitted to the FTA via the
EmaraTax portal. For further details regarding the completion and submission of
Voluntary Disclosures, please refer to the guidance available on the FTA website.

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12. Digital Tax Stamps
12.1. Chapter Summary
The purpose of this chapter is to provide an overview of the Digital Tax Stamps (“DTS”)
scheme that has been introduced in the UAE and indicate the key provisions that need
to be followed. The scheme requires the marking of certain Excise Goods with a
physical and digital marker – also referred to as “marks”. The purpose of the mark is
to validate the authenticity of Excise Goods, as well as to track and trace the goods
throughout the supply chain in order to verify whether Tax has been paid on those
goods. Certain requirements apply for specific types of Excise Goods and for specific
industries which need to be implemented and followed by Taxable Persons in order to
be able to import, produce or sell such Excise Goods in the UAE.
12.2. What is the Digital Tax Stamps Scheme?
The DTS scheme is a control scheme that requires manufacturers and stakeholders
to comply with enhanced standards for the importation and trading of certain
designated Excise Goods in the UAE. Currently, designated Excise Goods are
tobacco and tobacco products and the digital Tax stamps scheme has been introduced
on those products on a phased basis.
The first phase dealt solely with cigarettes, and the second phase applied to waterpipe
tobacco and electronically heated cigarettes. Marks with a new design were
introduced and approval for old marks were withdrawn.55
The scheme delivers unique pack marking and encoding that allows product trace-
ability from the point of manufacturing through to the final point of distribution. The use
of the scheme also supports enforcement activities which target illicit tobacco trading.
12.3. What does the Digital Tax Stamps Scheme require?
The DTS scheme applies to tobacco and tobacco products and requires Importers and
manufacturers in the UAE to apply specific high security control markers (stamps) and
codes to all packs. The principle aim of the DTS scheme is:
• to enhance the FTA's ability to control and collect taxes on tobacco products sold
in the UAE, following importation or local manufacture,
• to give the relevant authorities the ability to analyse and audit the supply chain in
order to better identify and combat the trade in illicit tobacco products, and

55 Article 2 of FTA Decision No. 3 of 2021.

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• to meet the compliance standards laid down by the World Health Organisations’
Framework Convention on Tobacco Control (FCTC) through the enabling of
tracking and traceability of compliant tobacco products.
From 1 January 2019, Importers and UAE based manufacturers/producers of the
designated Excise Goods were able to order stamps to be applied to the pack of
cigarette products.
From 1 May 2019, no cigarette products were allowed to be imported in the UAE
without having a Digital Tax Stamp.
From 1st August 2019, no cigarettes were allowed to be held out for sale, imported or
produced in the UAE, unless they have a Digital Tax Stamp. All cigarettes produced
or imported into the UAE after this date must have a Digital Tax Stamp with end-to-
end traceability.
New design marks were subsequently introduced and approval to use marks with the old
design was withdrawn. As per the following dates:
• 1 October 2021 – Local markets and duty-free markets (arrival terminals) –
Requests for marks with the new design may be submitted.
• 1 January 2022 – Duty free markets (departure terminals – Requests may be
submitted for marks with the new design.
• 31 December 2023 – Supply, transfer, storage or possession of cigarettes,
electrically-heated cigarettes and water pipe tobacco with old designs prohibited.56
The following Persons are covered under the DTS scheme:
• Manufacturers – Any UAE-based or overseas/international cigarette manufacturer
that sells its products via importation into the UAE for either domestic sales or sales
via UAE duty free outlets (e.g. airports and ports).
• Importers – Any officially licensed Importer of record who purchases cigarettes in
bulk from domestic or international manufacturers/producers and undertakes to
sell or distribute them in the UAE mainland or UAE duty free markets.
• Distributors/Supply chain agents/Warehouse Keepers or other specified Persons
within the supply chain – Any official distributor that is the recipient of formally
imported goods for sale in the domestic market or sales via UAE duty free outlets
(e.g. airports and ports).
12.4. Scenarios requiring the return of Digital Tax Stamps
Cabinet Decision No. 42 lists a number of scenarios where marks or stamps must be returned to
the FTA, including the following:

56 Article 2 of FTA Decision No. 3 of 2021.

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• where the Person possessing the stamps no longer intends to use the marks for
the purposes of affixing them to designated Excise Goods. Some examples of such
scenarios could include the ceasing of Business, ceasing of trade in a particular
product line, wastage during the production process, damage of marks outside the
production process or other.
• where a period of 12 months has passed since the Person received the marks and
those marks have not been affixed to designated Excise Goods.
• any other circumstances as specified by the FTA. This includes instances where
the marks are damaged or when new design marks are introduced and the old
designs are no longer approved.
12.5. Process of returning Digital Tax Stamps
Where a Person has an obligation to return the marks in line with the scenarios in
section 12.4 above, the marks should be physically returned to the authorised supplier
and appointed administrator of the DTS scheme in the UAE. If the marks are located
outside the UAE, such marks may be returned virtually. For any additional details
regarding destruction of digital stamps, please refer to the Excise Tax Public
Clarification on Scenarios Requiring the Return of Digital Tax Stamps (EXTP001).
For the avoidance of doubt, fees originally paid for the purchase of marks will not be
refunded where there is a requirement for marks to be returned. Businesses are,
therefore, encouraged to ensure that they are accurate in determining the expected
volume of marks required when placing orders.
Any Person who is obligated to return marks where applicable, should also report the
return of the marks online via the official DTS system.
For further details and guidance on the DTS scheme and the requirements for the
various parties involved, please refer to the guidance available on the FTA website.



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13. Account management
13.1. Chapter summary
The purpose of this chapter is to provide information in relation to change of
circumstances which may affect the Excise Tax registration.
13.2. Changing account details
Registrants must notify the FTA within 20 Business Day of any changes in account
details which may require an amendment to its Excise Tax Registration.
Examples of changes which should be notified to the FTA include:
• the name or trading name of the Business,
• the composition of a partnership,
• the address of the principal place of Business, or
• the primary Business activity.

A Registrant must notify the FTA of such changes by submitting a registration
amendment form that can be accessed via EmaraTax portal.
13.3. Change in circumstances
Excise Tax registrations are based entirely on the information provided by the Taxable
Person to the FTA. It is the Registrant’s responsibility to ensure that the information
submitted to the FTA is accurate and up to date.
In the event that Business circumstances materially change in a manner which could
affect the Excise Tax registration, the Registrant must notify the FTA in writing of these
circumstances within the legally prescribed timelines.
Certain changes which occur may result in an amendment or a cancellation of the
Excise Tax registration, or a requirement to register for Excise Tax where such
registration requirement did not previously exist.
In the event that a change in circumstances is not notified to the FTA within the legally
prescribed timeline, the Registrant could be subject to a penalty.57
Examples of material changes which should be notified to the FTA include:
• the Business ceases to be eligible for an exception from registration,
• the Business ceases trading,

57 Article 24(1)(e) of the Tax Procedures Law.

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• the Business is sold, or
• taxable activities cease for any reason.
For further information regarding the manner in which these changes should be
notified to the FTA, please refer to the guidance available on the FTA website.


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14. Tax Audits
14.1. Chapter summary
The FTA has the right to establish or verify a Person’s Excise Tax liability by way of a
Tax Audit.58 A Tax Audit is a procedure undertaken by the FTA to inspect the
commercial records or any information, data or goods related to a Person to verify the
fulfilment of its Tax obligations.59
Under the Tax Audit process, the FTA will be entitled to examine the records required
to be preserved by a Taxable Person under the law and to generally inspect the
circumstances of their Business. A Tax Audit may be carried out at the Taxable
Person’s Business premises (i.e. a “field Tax Audit”) or in the offices of the FTA.
Generally, prior notification of a Tax Audit will be given.
In the process of carrying out a Tax Audit, the FTA may make copies of, take extracts
from, or sample any information or goods as it may deem necessary.60
14.2. Why is a Tax Audit necessary?
Excise Tax is a self-assessment tax, meaning that Taxable Persons themselves
declare the amount of Excise Tax payable or refundable. The Tax Audit provides the
FTA with a mechanism for checking whether such declarations are correct.
If an underpayment of Excise Tax is discovered, the FTA will issue an assessment to
require payment of the relevant Excise Tax, together with any assessed penalties.61
14.2.1. How often will Businesses be audited?
The FTA will determine which Persons should be audited and with what regularity -
based on the risk to the public revenue.
14.2.2. Where and when will the audit take place?
The FTA will normally perform the Tax Audit at its own offices or the place of Business
of the Person subject to the Tax Audit. This can include any place where the Person
stores Excise Goods or keeps records.

58 Article 16(1) of the Tax Procedures Law.
59 Article 1 of the Excise Tax Decree-Law.
60 Article 17 of the Excise Tax Decree-Law.
61 Articles 24 and 25 of the Tax Procedures Law.

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Where the audit takes place at the Person’s place of Business, it will usually be during
the FTA’s normal Business hours.
14.2.3. Will the Person be informed of the audit before it takes place?
The FTA will usually inform the Taxable Persons of the audit at least ten Business
Days in advance, however, no notice will be given in cases of suspected Tax Evasion,
or if to do otherwise would hinder the conduct of the audit.
14.3. What can a Person expect to happen during a tax audit?
The relevant FTA officer(s) will inspect the Taxable Person’s documents, assets
and/or premises with a view to confirming the Taxable Person’s Excise Tax position.
The tax auditor may interview Persons from various parts of a Business, for example
members of the finance team to confirm how the Excise Tax Return is calculated, or
a Person in logistics to confirm the process for importing goods into a warehouse etc.
The tax auditor may also remove documents, items, or samples for further review.
The amount of time required for the audit will depend on the size of the Business and
the complexity of its Tax affairs. The FTA will notify the Business of the audit results
within ten Business Days of the end of the audit.62
14.4. What level of conduct is required from the Taxable Person?
Any Person subject to a Tax Audit (including his Tax Agent, or Legal Representative),
must offer full access to records and assistance to the tax auditor in order for him to
carry out the audit.
For example, upon receiving notice of a scheduled audit, the Taxable Person should
ensure:
• the relevant premises are accessible,
• Excise Tax records are accessible, and
• relevant staff are present (for example the Person responsible for compiling the
Excise Tax Return).
If the Taxable Person fails to provide adequate facilities and assistance, he may be
subject to penalties.
Furthermore, taxpayer is required to maintain and upon a request, provide an audited
report of stockpiled Excise Goods. Failure to maintain audited reports for stockpiled

62 Article 19(1) of the Tax Procedures Executive Regulation.

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Excise Goods may lead to the FTA considering the entire inventory as "excess,"
triggering full Excise Tax liability.
14.5. What powers does the FTA have during a Tax Audit?
In order to confirm the Taxable Person’s Excise Tax position, the tax auditor may,
subject to certain rules and restrictions:
• request original records or copies of documents (or request records or information
from third parties in respect of checking the Person’s Tax position), and
• take samples.63
For example, the Tax auditor could require copies of invoices, or detailed calculations
underlying to the Excise Tax return.
The FTA may submit a written request for information and documents. Where such a
notice is received, the Taxable Person is required to provide the requested information
or records within a reasonable period (subject to any specified date).
14.6. What rights does a Taxable Person have during a Tax Audit?
Taxpayers have the right to request the Tax auditors to show their job identification
cards and to attend the Tax Audit if it takes place at a place outside the FTA.
Where records, items, or samples are removed in the course of an audit they will be
returned as soon as reasonably possible, in the same condition (subject to the item
being perishable etc.). In addition, a receipt can be provided for any item removed.
Taxable Persons will also be allowed supervised access to records removed by the
FTA.64
14.7. Result of a Tax Audit
The FTA will communicate the results of the audit to the Taxable Person within ten
Business Days from the end of the Tax Audit.65 Should the audit result in a Tax or
Administrative Penalties Assessment, the normal appeals procedures will apply.
14.8. Tax Evasion
A Person shall be deemed to commit Tax Evasion if the Person performs or facilitates
any of the following:

63 Article 17 of the Tax Procedures Law.
64 Article 22 of the Tax Procedures Law.
65 Article 19(1) of the Tax Procedures Executive Regulation.

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• bringing or attempting to bring excise goods into or out of the UAE without payment
of the relevant Excise Tax in part or in full,
• producing, transferring, acquiring, storing, transporting or receiving excise goods if
the Excise Tax was unpaid with the intention of avoiding the payment of the Excise
Tax,
• placing false distinguishing marks on excise goods with the intent of evading the
settlement of Excise Tax or receiving unlawful refunds,
• submitting any false, counterfeit or unreal documents, returns or records, with the
intent of evading the payment of Excise Tax or receiving unlawful refunds.66
A prison sentence and/or monetary penalty not exceeding three times the amount of
the evaded Tax may be imposed in respect of Tax Evasion. Article 25 of the Tax
Procedures Law lists additional instances of Tax Evasion.
14.9. Statute of limitation
Generally, the FTA may not conduct a Tax Audit or issue a Tax assessment to a
Taxable Person after five years from the end of the relevant Tax Period.67
As exceptions to the above general rule, the FTA may conduct a Tax Audit or issue a
Tax assessment to the Taxable Person after five years from the end of the relevant
Tax Period, if
• The Taxable Person has been notified of the commencement of such Tax Audit
before the expiration of the five-year period, provided that the Tax Audit is
completed or the Tax assessment is issued, within 4 years from the date of
notification of the Tax Audit.
• The Tax Audit or Tax assessment issuance relates to a Voluntary Disclosure
submitted in the fifth year from the end of the Tax Period, provided that the Tax
Audit is completed or the Tax assessment is issued, as the case may be, within
one year from the date of submission of the Voluntary Disclosure.
• The Tax Audit or Tax assessment issuance relates to a refund application
submitted in the fifth year from the end of the relevant Tax Period, provided that
the Tax Audit is completed or the Tax assessment is issued, as the case may be,
within two years from the date of submission of the refund application.

66 Article 23 of the Excise Tax Decree-Law.
67 Article 46(1) of the Tax Procedures Law.

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The Cabinet may, according to a suggestion by the Minister, issue a Decision to
amend the period specified for the completion of the Tax Audit or the issuance of the
Tax assessment in the above instances.68
No Voluntary Disclosures may be submitted after five years from the end of the
relevant Tax Period, with the exception of submitting a Voluntary Disclosure relating
to a refund application for which the FTA has not yet issued a decision, where such
Voluntary Disclosure relates to an error in accordance with Clause 2 of Article 10 of
the Tax Procedures Law.69
The statute of limitation will be 15 years from -
• The end of the Tax Period in which Tax Evasion occurred.70
• The date on which the Taxable Person should have registered for Excise Tax, if
the Person failed to register.71


68 Article 46(2) – (5) of the Tax Procedures Law.
69 Article 46(6) of the Tax Procedures Law.
70 Article 46(7) of Tax Procedures Law.
71 Article 46(8) of Tax Procedures Law.

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15. FTA decisions
15.1. Chapter summary
In the course of undertaking its duties in administering Excise Tax in the UAE, the FTA
may issue a formal decision in respect of your Tax affairs which you disagree with. A
reconsideration and appeals process are, therefore, available to Taxable Persons in-
line with international best practice.
15.2. Overview of the appeals process
The appeals process is structured in tiers, allowing decisions at each level to be
appealed to a higher authority until the dispute reaches the Courts. The main tiers,
listed from lowest to highest authority, are as follows:
• request a Tax assessment review (optional step),
• request to the FTA for a reconsideration (necessary step in order to proceed to the
next tier or higher authority),
• objection to a Tax disputes resolution committee (“TDRC”), (necessary step in
order to proceed to the next tier or higher authority), and
• appeal to a court of law.
Each appeal body will make its decision based on application of the relevant law to
the factual basis. Outcomes from the Tax assessment review request, reconsideration
and appeals process can be that the decision is upheld, revised, or withdrawn.
Taxpayers submitting Tax assessment review requests, reconsideration and objection
applications to the FTA and the TDRC may request for an extension of the timeline,
provided that they meet certain conditions, in line with the Tax Procedures Law.72 For
more information on the eligible cases for extension, please refer to the FTA Decision
No. 1 of 2025.
Taxable Persons will be responsible for covering any costs they may incur (for
example, court fees, consultancy fees, or legal advice) in respect of the process.
15.3. What matters can be challenged?
Only decisions by the FTA in respect of the Person’s own Excise Tax affairs can be
challenged through either a request for a Tax assessment review, reconsideration,
objection or an appeal.

72 Article 35 of the Tax Procedures Law.

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It is important to note that the Tax assessment review stage is specifically for disputes
related to Tax assessments and does not apply to other decisions issued by the FTA.
Not every comment by the FTA will be a decision. A decision is usually a statement of
the FTA’s final position on a matter, as based on a full consideration of the facts, and
the relevant Excise Tax law, for example a Tax Audit assessment. It may be the case
that a Taxable Person disagrees with only part of an FTA decision. In this case the
Taxable Person may limit a reconsideration request to only that part of the decision.
15.3.1. Request a Tax assessment review
The amended Tax Procedures Law, effective as of 1 March 2023, allows a Person to
request a review of a Tax assessment or related administrative penalties by the FTA.73
It is important to note that this review stage is optional, allowing taxpayers to request
the FTA to review a Tax assessment based on provided reasons that highlight
inaccuracies or errors. Taxpayers can choose to either opt for this stage or proceed
directly to the reconsideration stage at their discretion.
As stated above, the Tax assessment review stage is specifically for disputes related
to Tax assessments and does not apply to other decisions issued by the FTA. This
review can be requested whether the taxpayer disputes the entire Tax assessment or
only part of it, and it also covers related administrative penalties arising from the Tax
assessment conclusions.74
Tax assessment review request must be submitted within 40 Business Days from the
date of notification of the relevant Tax Assessment, and must include the reasons for
the request.75 The FTA is required to review the request and issue a decision within
40 Business Days, notifying the applicant of the decision within 5 Business Days of
issuance.76
Please note that the deadline for submitting a Tax assessment review request may be
extended in certain cases. For more information on the eligible cases for extension,
please refer to FTA Decision No. 1 of 2025.
It is important to note that a Tax assessment review request cannot be submitted or
continued if a reconsideration request has already been filed.77 The request must be

73 Article 28 of the Tax Procedures Law.
74 Article 28(1) of the Tax Procedures Law.
75 Article 28(2) of the Tax Procedures Law.
76 Article 28(3) of the Tax Procedures Law.
77 Article 28(5) of the Tax Procedures Law.

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made in the form and manner specified by the FTA.78 For more information on the
process of submitting a Tax assessment review request, please refer to the Tax
Procedures Public Clarification on Tax assessment reviews (“TAXP008”).
If the Person is dissatisfied with the decision, they may submit a reconsideration
request, as discussed in the next section.
15.3.2. Request a reconsideration
The FTA reconsideration process is the gateway to the appeals process. The Taxable
Person must apply in writing to the FTA within 40 Business Days from the date of
notification of the FTA’s decision, for the FTA to review its own decision.79 It is not
possible to skip straight to applying to appeal to a higher body (e.g. the TDRC) without
first requesting an FTA reconsideration.
Please note that the deadline for submitting a reconsideration request may be
extended in certain cases. For more information on the eligible cases for extension,
please refer to FTA Decision No. 1 of 2025.
It is important to note that once a taxpayer submits a reconsideration request to the
FTA for a specific Tax assessment and related administrative penalties, they can no
longer request a Tax assessment review. Any pending Tax assessment review
requests will be disregarded by the FTA.
The application for a reconsideration will need to include the Taxable Person’s
grounds for making the request, identifying why they disagree with the relevant
decision, and providing a justification for a reconsideration being required. If a
justification is not provided, or is inadequate then the FTA can reject the application.
The reconsideration application form can be found on the EmaraTax portal where it
can also be completed and submitted to the FTA.
15.3.3. FTA decision on Tax assessment review or reconsideration request
The FTA will consider the relevant request, issue a decision within 40 Business Days
and inform the applicant of this decision within five Business Days from the decision
date.80 Please note that the FTA may extend this period by 20 Business Days if the
extension is necessary to decide on the request.81

78 Article 28(6) of the Tax Procedures Law.
79 Article 29(1) of the Tax Procedures Law.
80 Article 29(2) of the Tax Procedures Law.
81 Article 25(1) of the Excise Tax Executive Regulation.

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It may be that the FTA seeks further communication with the Taxable Person before
finalizing its reconsideration in order to confirm certain points. The reconsideration
decision will bind the Taxable Person unless it is appealed further to the TDRC.
15.4. Objections to TDRC
Objections in respect of FTA reconsideration decisions, and applications for
reconsideration which the FTA did not rule on, will be heard by the TDRC.
An objection to the TDRC must be submitted within 40 Business Days from the date
of notification of the FTA’s decision. An objection will not be accepted by the TDRC if:
• A reconsideration request has not previously been submitted to the FTA.
• The full amount of Tax in connection with the objection has not been settled.
• If the objection is not submitted within 40 Business Days from the date the Person
was notified about the reconsideration decision.82
Unlike a reconsideration request which is considered by FTA officers, the objections
to the TDRC are considered by members of the judicial authority and appointed Tax
experts.
The TDRC shall review eligible objections and make a decision within 20 Business
Days from the date of receiving the objection.83 The TDRC may extend the period for
deciding on the objection for a period of 60 Business Days if there are reasonable
grounds for the extension. The TDRC shall inform the Taxable Person within five
Business Days from the date the it made its decision.84
If the decision of the TDRC is not appealed, then it will bind the Taxable Person and
the FTA. TDRC decisions in regards of disputes with a value of less than AED 100,000
cannot be appealed.85
In all cases, Tax disputes will not be accepted before the Competent Court if an
objection has not been previously submitted to the TDRC.86
15.5. Appealing a decision of the TDRC to a Competent Court

82 Article 32 of the Tax Procedures Law.
83 Article 33(1) of the Tax Procedures Law.
84 Article 33(2) of the Tax Procedures Law.
85 Article 33(3) of the Tax Procedures Law.
86 Article 33(4) of the Tax Procedures Law.

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Decisions of the TDRC may be appealed to the judicial courts by either the Taxable
Person or the FTA within 40 Business Days from the notification of the TDRC’s
decision.
An appeal may be lodged if either party disagrees with the TDRC decision (in full or
partly), or if the TDRC failed to issue a decision within the prescribed time period.87
The competent court shall rule the appeal as inadmissible in the following instances:
• If the reconsideration request has not previously been submitted to the FTA and
an objection has not been submitted to the TDRC.
• If the full amount of Tax in connection with the objection has not been settled. The
Taxable Person is required to provide proof that the full amount of Tax was paid to
the FTA. Where the amount of Tax as decided by the TDRC or the competent court
increases as per the decision of the following levels, the Person is required to pay
the difference before being eligible to take the matter to the higher competent court.
• If at least 50% of the amount of the administrative penalties have not been paid,
unless an approved bank guarantee in favour of the FTA has been provided for
this amount. Where the amount of penalties as decided by the TDRC or the
competent court is increased by the higher competent court, the Person is required
to pay 50% of the increase before being eligible to proceed to the next level.
The Court will make its decision by applying the Tax legislation and any other relevant
law to the relevant facts of the dispute. Once the dispute has entered the formal court
system, the rules and regulations of those courts shall apply in respect of procedures.



87 Article 36(1) of the Tax Procedures Law.

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16. Updates and amendments

Date of amendment Amendments made
January 2026
• Updates to Excise Goods and applicable rates.
• Updates to registration requirements.
• Updates in relation to the classification of
sweetened, carbonated and energy drinks.
• Introduction of tiered-volumetric model for
calculating Excise Tax on sweetened drinks.
• Updates in relation to the type of declarations and
reporting.
• Updates and reference to the renewal process for
Designated Zones.
• Updates to Deductible Tax provisions.
• Updates in relation to the use of the Product
Registration Portal.
• Updates in relation to the Digital Tax Stamps
Scheme.
• Updates on statute of limitation.
• Updates on requirements for access to appeal
procedures and the procedure itself.
• Added footnotes with legislative references.