Public clarification EXTP007 has recently been issued by the UAE Federal Tax Authority to explain how to get the approval of excise tax relief in UAE for shortages or deficiencies of goods within UAE Designated Zones. It also laid out the official process on how to destroy excise goods within UAE Designated Zones.
There are instances wherein stored excisable goods within UAE Designated Zones are identified by the taxable person or warehouse keeper to have deficiency or shortage. In such case, as an exception of the goods being considered for release for consumption, a warehouse keeper has to provide the tax authority an urgent notification via excise tax experts in UAE. The notification has to be in the form of a declaration, specifically EX203B or Lost & Damaged Declaration. The Federal Tax Authority will review the declaration and has the right to approve/reject requests for excise tax relief.
How to Get Excise Tax Relief for Missing or Deficient Goods in UAE
If you have undergone excise tax registration in UAE, follow these steps to complete the Lost & Damaged Declaration or EX203B and request UAE excise tax relief:
Step 1: Select the tab labeled "Excise Tax" from the main page of the FTA's official website.
Step 2: Begin the process by clicking the button labeled "EX203B for Lost/Damaged Declaration." This will launch the form.
Step 3: Fill out the form as follows:
The section of the declaration for the basic information of the taxable person or registrant will be auto-completed. The details will be based on the information provided in the registration form of the registrant. You’ll be asked to input the Designated Zone (DZ) number.
After that, you will be asked to input the item codes for the excisable goods that you need to report as missing or damaged. Simply select "Item Search" from the drop-down menu to view a product's item code. A new tab with the Item Search page will open. Once you've found the product, take note of the "Item Code," then paste it back into the search bar (this is in the tab that was previously opened). After you have copied and entered the item code in the search field, proceed to the next step and click "Search Product." The information about the excisable goods will be filled in automatically.
After you have selected "Add Item in list" from the drop-down menu, a table will display the results of the calculation regarding the excise tax liability on the excise tax due. This procedure of adding excise goods to the form, Lost and Damaged Declaration, can be carried out multiple times in order to declare new items and their respective quantities. The details that were supplied in your registration for excise tax will be used to pre-populate the Authorized Signatory part of the declaration; however, these details cannot be edited once they have been entered.
Step 4: Agree to the terms and conditions.
As soon as you have completed your declaration, click the ‘Declaration’ button to confirm you agree to the specific terms and conditions set by the tax authority and to provide affirmation that the information you’ve inputted in form EX203B is accurate. Click the ‘Submit’ button which is at the bottom part of the screen once you are absolutely certain that all the information is correct.
How to Check the Status of a Lost & Damaged Declaration
The process on how to check the status of my Lost & Damaged Declaration FTA is straightforward. You can check the status of the Lost & Damaged declaration you've submitted by selecting the "Excise Tax" tab, then navigating to the "Inventory/EX203B" page, and looking next to the word "Status." You can see the form by locating the "Transaction Number" and clicking on it. It’s advised to seek the help of Dubai excise tax specialists for further clarification.
- If it says ‘Drafted,’ this means the declaration hasn’t been submitted or completed by the applicant;
- If it says ‘Pending,’ this means the declaration is already with the FTA and action can be anticipated;
- ‘Rejected’ means the request for excise tax relief has been rejected;
- ‘Resubmitted’ may also be shown, which means the tax authority has requested for the applicant to furnish more information;
- If it’s ‘Under Inspection,’ this means the tax authority has initiated a physical inspection of the excise goods declared;
- ‘Approved with Waiver’ is when the tax authority has reviewed the application/declaration and approved the waiving of excise tax liability;
- If it’s ‘Approved without Waiver,’ it means the tax authority reviewed the declaration, given its approval, but excise tax liability isn’t waived
For excise tax UAE, if the form says ‘Approved without Waiver,’ the calculated amount for excise tax from a Lost/Damaged Declaration is going to be stored for the next filing of excise tax return following the date of the issuance of ‘Approval without Waiver’ decision of the Federal Tax Authority. The amount will automatically reflect in the section of your excise tax return, ‘excise tax due for release of excisable goods from a UAE designated zone.’