ITC Accounting and Tax Consultancy

Excise Tax - A Comprehensive Guide on Maximizing Excise Refunds in the UAE


Understanding the nuances of excise tax refunds is crucial for firms operating in the UAE to maximize financial results. The government of the United Arab Emirates has set up a structure that enables Taxable Persons to request refunds on extra refundable tax. In this post, we’ll examine the real law governing excise tax refunds , examine the circumstances in which refunds are possible, and lay out the procedure step-by-step.

Purpose of the Claim

Every Taxable Person is required to submit an excise tax return that details the excise tax owed to the Federal Tax Authority (FTA) for a specific tax period. An excess refundable tax is created when a Taxable Person’s deductible tax is greater than the excise tax due to the FTA. This extra refundable tax must be carried over and applied to upcoming excise tax obligations due to the FTA. The Taxable Person may submit a claim to the FTA for a refund if, after two tax periods, there is still excess refundable tax that needs to be refunded.

Repayment Schedule

The FTA will process a claim for a refund of excessive refundable tax and pay the Taxable Person within the following time frames:

Within two calendar months of the claim for a refund’s submission. Within 21 calendar days of the audit’s conclusion in circumstances where a tax audit is carried out to confirm the legitimacy of the claim.

In some circumstances, such as when the Taxable Person’s excise tax registration is revoked or when the FTA is certain that the Taxable Person will engage in taxable activities but will probably have excess refundable tax for a period of at least 12 months, the FTA may also choose to refund the excess refundable tax.

Making a Claim Submission

The steps below should be followed to start the claim process:

  • Utilize your username and password to sign in to the FTA e-Services Portal.
  • Go to the ‘Excise Tax’ tab and then click ‘Excise Tax Returns and Excise Tax Refunds’.
  • The Refund form is accessible.
  • Fill out the form completely by completing all essential fields. An asterisk (*) denotes a required field in the question.
  • By selecting the ‘Save and Review’ button, go through the form and make sure all the information is correct.

Checking Your Balance After Approval

You will get a confirmation email once your refund claim has been accepted. Through the ‘My Payment’ page found in the Transaction History section, you may check your balance to make sure the refund has been executed properly. There will be a specific row that shows the amount being repaid.

Businesses in the UAE can take advantage of the possible advantages of excise tax refunds by understanding the procedure and doing the necessary actions. Businesses can strengthen their financial situation and gain a competitive edge by taking advantage of this opportunity.

For professional guidance contact our specialists for specialized advice and help with excise tax refunds. Take advantage of this chance to improve the financial performance of your business right away.

This article was published on  19 June 2023

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