New amendments to certain provisions on Excise Tax in effect

The UAE Ministry of Finance has introduced amendments to certain provisions of Federal Decree-Law No. 7 of 2017 on Excise Tax in effect.

They aimed at supporting the business sector, fulfilling obligations to taxable persons, reducing tax evasion, and addressing challenges related to the application of excise tax. Amendments were introduced in certain provisions of the Act.

Under the new amendment, persons importing excise goods for purposes other than carrying on business will be exempted from tax registration,

At the same time, the import will be liable to pay the relevant excise duty.  As per the amendment, the application for exemption from tax registration must be submitted before the import operation,

A new provision has been added confirming that any person who receives an amount as tax or issues an invoice reflecting the tax must settle the amount with the Federal Tax Authority (FTA) and the amount be treated with the same treatment determined for due tax. Added provisions for statutes of limitation relating to tax audits, tax assessments, and permissible time-frames for submission of voluntary disclosure.

The statute of limitations article sets the maximum time frame within which the FTA responsible for enforcing the excise tax can operate. Once this period has expired, the FTA is generally precluded from taking action.