List of excise taxable products expanded

UAE Federal Tax authority (FTA) has recently issued Cabinet decision No.52 of 2019 and expanded the list of excise taxable products to include below from 1st December 2019:

• 1.
• Sweetened drinks – a product to which a source of sugar or other sweetener is added that is produced in any of the following forms:

• 1.
• ●
• A ready-to-drink beverage intended to be used as a drink;

• 1.
• ●
• Concentrates, powders, gel, extracts or any form that can be converted into a sweetened drink

• 2.
• Electronic smoking devices and tools – whether or not they contain nicotine or tobacco

• 3.
• Liquids used in electronic smoking devices and tools – whether or not they contain nicotine or tobacco

Excise rates:

Sweetened drinks	50%
Electronic smoking devices and tools	100%
Liquids used in electronic smoking devices and tools	100%

New reporting requirements

FTA has updates Excise tax user guide and excise tax returns user guide to include new reporting requirements. Excise tax return due on 15th sept 2019 should be prepared taking into consideration new requirements.

The new procedures include separate reporting of goods released from Excise Tax designated zone, movements of goods into, within and between designated zones, as well as local purchases and transfer of ownership within a designated zone.

Excise tax return – New forms

Box 3 – EX202A – Designated zone reporting – release goods from DZ which do not require custom clearance

Box 3 – EX202A– Designated zone reporting – consumption of goods within DZ

Box 3 – EX203B– Lost & damaged declaration when approved without waiver – to be used by taxable persons whose excise goods are lost or destroyed/damaged inside a DZ. Warehouse keeper has to approve the form for consideration by FTA to waive excise liability

Box 7 – EX202A – DZ reporting– to be used by Taxable Persons to claim a deductible tax for Excise goods where the tax has been previously paid and the goods have been placed inside a Designated Zone not requiring customs clearance

Other reporting requirements

• 1.
• EX202A Designated Zone Reporting – Transfer goods to another Designated Zone (to be filed on movement of goods)

• 2.
• EX202A Designated Zone Reporting – Transfer goods for export from a Designated Zone (to be filed per export)

• 3.
• EX202A Designated Zone Reporting – Import into a Designated Zone (where there is no customs check)

• 4.
• Inventory – EX203A Local Purchase Form – to be used by taxable persons who have purchased excisable goods where tax has already been paid, to be filed whenever such purchases are made

• 5.
• Inventory – EX203C Transfer of Ownership within Designated Zones – to be used by taxable persons who have sold excise goods kept inside Designated Zones that do not require customs clearance to another registered Taxable Person (i.e. TRN holder)

New electronic system to register excise goods

FTA has launched a new electronic system for registering excise goods.

FTA asked all businesses dealing with excise goods to follow the new process of registering excise goods and ensure all required documents to be uploaded to support the declared price of the goods.

Requirements include product details, ingredients, marketing information – including images and videos – lab tests, and, in some cases, the retail price of the product based on UAE or international retailers.

This document is only for information purposes and should not be construed as advice. It does not necessarily cover each aspect of the topic with which it deals. You should not act upon the contents of this document without receiving formal advice on your particular circumstances.

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