Amendment of Excise Tax Law

The UAE Ministry of Finance has recently published important amendments related to the Excise Tax Law. The amendments include some changes in the existing Articles of the Law and the insertion of a new Article on the Statute of Limitation (SOL). Please note that these amendments are?effective from 14 October 2022.

Is an Exception from Excise Tax Registration possible?

In general, a person is not allowed to import Excise Goods or release goods from a Designated Zone unless the person is registered for Excise Tax purposes. However, the FTA may except the person from registering for Excise Tax in the following instances:

1. If it appears to the FTA that the person will not regularly import Excise Goods; or

2. If the person imports Excise Goods or releases from Designated Zone for purposes other than conducting business

Can the statute of limitation exceed 5 years?

A statute of limitation has been introduced to the Excise Tax Decree-Law that sets the maximum timeframe in which the authority can act as per the Tax Procedure Law. Once this period expires the FTA is generally precluded from taking actions such as commencing an audit or issuing a tax assessment.

As a general rule, The FTA may not conduct a tax audit or issue a tax assessment to a taxable person after the expiration of 5 years from the end of the relevant tax period.

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