UAE Excise Tax Development During 2022

January 2022

Issuance TAXP004 – extension of benefit to avail amnesty for the 70% of admin penalties related to Excise Tax imposed prior to 28 June 2021.

April 2022

Raqeeb Program -  the Whistle-blower Program for tax violations/ evasion as FTA continuously ensure compliance with applicable tax legislation including Excise Tax.

June 2022

Issuance EXTP007 – allowing taxpayers to apply for relief from Excise Tax in case of deficiency, quantity shortage, destruction within an Excise Tax Designated Zone subject to certain conditions.

July 2022

Excise Tax Inspections – FTA intensifies inspection visits by 104% in first half of 2022. Inspections resulted in seizure of nearly 1.07 million packages including soft drinks, energy drinks and sweetened drinks. Total value of tax liabilities is AED 130.4 million.

August 2022

Issuance EXTP008 – on calculation of financial guarantees and acknowledges tax compliant behavior of Warehouse Keepers by lowering guarantee amount.

Guide on Excise Tax for Clearing Companies – relevant on procedures to suspend Excise Tax upon import, release suspended Excise Tax for exported goods, and declare consumed goods.

Guide on Excise Stock Movement For Warehouse Keepers who are not Registered for Excise Tax.

Key Takeaways

The Excise Tax regime in the UAE is maturing and businesses dealing with excise goods should be informed on the latest changes. Excise Tax is a “niche” expertise, and this expertise should be available or developed in the organizations dealing with Excise Goods.