United Arab Emirates
Federal Tax Authority of UAE has issued guidance in Dec 2020 for Excise Tax Clearing Companies. This guide covers the process registration /Amendments of Excise Tax Clearing Companies and how to handle the imports, release & consumption.
Purpose of these Guides
To help Excise Tax Clearing companies understand the process of
Registration
Register Clearing Companies who have a TINCO account may use the Excise Tax Clearing Company (TINCE) registration form to apply for suspension of the Excise Tax due on the Excise Goods that they will import on behalf of importers
To understand about TINCO and TINCE, click to refer our blog
The guide explains how to register Clearing companies and how they can place guarantee amount that can be used for purpose of deferring Excise Tax which would otherwise be paid at time of import.
To understand how clearing companies can register for this purpose, refer PDF file linked in Excise Tax Update Guide.
Excise Tax Suspension on Import
Steps involved in deferring excise tax upon import, also commonly referred to as suspension of excise tax
When the goods are imported, clearing company who has registered for this purpose, can defer payment of Excise Tax provided sufficient guarantee amount is placed with FTA.
This guide explains how to use the eservices portal for purpose of deferring the excise tax
To know the step by step process for deferring Excise Tax on import, refer PDF file linked in Excise Tax Update Guide.
Release and Export
How to release the guarantee which is blocked by FTA at time of import of goods. This could be on payment of Excise Tax payment when released for consumption (or) export of goods.
To know the step by step process for deferring Excise Tax on import, refer PDF file linked in Excise Tax Update Guide.
Article prepared by: Mohammed Ali Taha, reviewed by: Rishi Chawla Date of preparation: 10 Dec 2020
This document is only for information purposes and should not be construed as an 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.
If you would like to discuss any Excise Tax matters or need tax consultancy in Dubai, please drop us an email at info@premier-brains.com or call us at + 971 4 3542959.
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