The UAE has issued its Excise Tax Regulations has been saved
The UAE has issued its Excise Tax Regulations
All affected businesses are required to have an inventory of all goods on hand prepared by 1 October.
With reference to the excise tax alert issued on September 27, 2017, The United Arab Emirates (UAE) has released its Excise Tax Executive Regulations, Federal Tax Procedures (FTP) Executive Regulations and Cabinet Decision No. (38) of 2017 on Excise Goods, Excise Tax Rates and the Method of Calculating the Excise Price.
All businesses that have excise goods (carbonated drinks, energy drinks and tobacco products) are required to have a stock take done (audited) of goods on hand ready for 1 October. This includes retailers, hoteliers, restaurants and as well as importers and producers.
This is because there is a liability to account for 'excess' stock on hand. Excess stock is defined as more than 2 months’ worth of stock or more stock than is normally held by the business, but an audit is required regardless. Businesses without such a stock take may be subject to penalties.
It is therefore imperative businesses mobilise to conduct an audit immediately. The Federal Tax Authority (FTA) has indicated they expect the audit to be conducted by a third party.