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The New Excise Tax Public Clarification Announced by FTA on Designated Zones effective from 1st April 2023

In the United Arab Emirates, all designated areas must have a Warehouse Keeper who is responsible for supervising the Designated Zone’s activities and ensuring that it adheres to the necessary safety and security standards. To be eligible for this role, a Warehouse Keeper must  apply to the Federal Tax Authority for authorization to oversee the Designated Zone.

Starting from April 1, 2023, this statement offers additional information about the requirements and standards necessary to register as a Warehouse Keeper or to renew the registration of a Designated Zone. It elaborates on the conditions and criteria that must be met.

Anyone who manages or plans to manage a Designated Zone for excise tax purposes (also called an “excise”) must enroll as a Warehouse Keeper and enroll each of the Designated Zones that they oversee or intend to supervise. As a component of the Designated Zone’s registration or renewal of registration application, the Warehouse Keeper must:

  • Indicate the types of excise products that are currently kept or will be kept in the Designated Zone.
  • Specify the amount of excise goods that are presently kept or will be kept in the Designated Zone.
  • Furnish a financial guarantee in relation to the excise goods saved or anticipated to be stored in the Designated Zone.
  • Show evidence that sufficient measures for physical security have been enacted in relation to the Designated Zone.
  • Show evidence that the company employs a stock and record management system that monitors the movement of goods into and out of the Designated Zone, as well as transfers between Designated Zones.

This article was published on  31 March 2023

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