Issue
Excise Tax in the UAE is regulated by the Federal Decree-Law No. 7 of 2017 on Excise Tax ("Excise Tax Decree-Law"). The Federal Decree-Law No. 19 of 2022 on the Amendment of Some Provisions of the Federal Decree-Law No. 7 of 2017 on Excise Tax has been issued, amends some articles of the Excise Tax Decree-Law, and is effective from 14 October 2022.
The following articles of the Excise Tax Decree-Law have been amended:
Article 1 on Definitions, including the insertion of new definitions.
Article 5
Article 6 whereby this article is further clarified in this Public Clarification.
Article 19 whereby this article is further clarified in this Public Clarification.
Article 20
Article 22
Article 23
Article 28
A new Article 25 bis has been inserted in the Excise Tax Decree-Law on Statute of Limitation. This article is further clarified in this Public Clarification.
This Public Clarification is specifically intended to inform persons of the following main changes to the Excise Tax Decree-Law:
Exceptions from registration
Payment of amount received as Excise Tax
The statute of limitation
Summary
The following amendments to the Excise Tax Decree-Law are effective from 14 October 2022.
Exception from registration:
Persons importing excise goods for purposes other than conducting business will be excepted from registration.
Payment of any amount received as Excise Tax:
Any amount(s) collected, or reflected on an invoice as Excise Tax, is deemed to be Excise Tax and payable to the FTA.
The statute of limitation:
A statute of limitation relating to tax audits and tax assessments has been introduced in the amended Excise Tax Decree-Law.
Detailed analysis
Exception from registration:
As a general rule, a person is not allowed to import excise goods or release excise goods from a designated zone unless the person is registered for Excise Tax purposes.
However, as an exception to the general rule, the FTA may except a person from tax registration if it appears to the FTA that the person will not regularly import excise goods.
Anyone excepted from tax registration is required to inform the FTA of any changes to that person's circumstances that would make the person liable to register for Excise Tax.