The Federal Tax Authority (FTA) issued an Excise Tax Public Clarification- EXP005 on the Annual Renewal of Designated Zone Registrations.
Under this public clarification, the FTA notifies that each Excise Tax warehouse-keeper must review the expiration dates of its designated zones.
For designated zones, the warehouse-keeper ought to submit a designated zone renewal form. He needs to pay the renewal fee for each designated zone separately. The renewal fee of AED 2000 is required to be paid within the 20 business days before the expiry date.
In addition, the warehouse-keeper requires reviewing the type of excise goods held in the designated zone, and for those goods, the value should also be reviewed. Based on that, the FTA may review the value of the current financial guarantee and instruct the warehouse-keeper to lodge an updated financial guarantee if required.
In case if the warehouse-keeper fails to file the renewal form and the designated zone registration is not renewed, all the excise goods held within the designed zone on the date of expiry will be released for the consumption in the UAE. Excise Tax shall, therefore, become payable on those goods immediately based on Excise Tax Public Clarification- EXP005