Conditions for Applying for Excise Tax Administrative Exception in the UAE
Businesses that are registered for excise tax in the UAE can apply for tax administrative exceptions requesting alternative supporting evidence to confirm the export of excise goods from the UAE. The exceptions are granted as per Article 14 of the Executive Regulations on Excise Tax, which allows the businesses to submit alternative documents of exports in the absence of commercial or official evidence. However, the businesses need to demonstrate that they are unable to provide the commercial or official evidence for reasons that are beyond their control.
The request for administrative exceptions should be submitted to the Federal Tax Authority (FTA) which is the competent authority for excise tax in the UAE. The FTA has recently issued public guidance (EGAE01) which aims to clear the uncertainties surrounding the application process and criteria of eligibility. In addition to the public guide, tax registrants can consult with registered tax agents in Dubai, UAE, to obtain the best advice on administrative exceptions. Let’s move on to the core issues regarding the subject:
Top Criteria for Applying for Excise Tax Administrative Exception
Before applying for tax administrative exceptions in the UAE, the businesses should ensure that they are eligible for the provision as per the norms. The following eligibility criteria have to be met for submitting the application:
- The applicant must be registered for excise tax in the UAE
- The applicants should demonstrate they can’t obtain official or commercial evidence of export due to circumstances beyond their control
- Applicants must provide all necessary documentation to the FTA
Related: A Guide to Excise Tax Reporting Requirements in the UAE Designated Zones
While submitting the application, the applicants should provide the FTA with reasons/ circumstances for their inability to furnish official or commercial evidence required by the excise tax law in the UAE. The businesses must also provide alternative evidence to demonstrate that the excise goods have been exported from the UAE.
Commercial evidence could be an airway bill, bill of lading, consignment note, certificate of shipment etc. Official evidence is the export documents issued by the local Emirates Customs departments. Accredited tax agents in Dubai can help you submit the necessary documentation while applying for tax administrative exceptions.
How to Apply for Tax Administrative Exceptions?
The applicant who is registered with the FTA needs to submit the request for excise tax administration by email to the FTA. The tax registrant can appoint registered tax agents in Dubai or the UAE to make the formal request to the FTA. The tax agents from the best tax consultancy firm in Dubai possess the legal know-how and experience in dealing with the tax-related matters. This means the request will not be riddled with any errors or other anomalies.
Information / Documents Required to Submit the Request
The tax registrants need to submit the following information along with the application form:
- Detailed description for the purpose of making the request (not more than 500 words)
- Documentary evidence such as sample invoices, contracts, payment slips etc.
- Tax Registration Number (TRN) for Excise Tax
- Tax Agent Approval Number for the registered tax agent
- Contact Details of the Applicant
- A statement whether any previous requests were made
- Decision number if any previous requests were made
Time Taken by the FTA to Issue a Decision
The FTA will take a maximum of 40 days to issue a decision on the request made by the excise tax registrants. The applicants need to submit additional information/ documentation if the application is incomplete or the FTA requires more information to issue a decision on the request. The applicants need to wait for another 40 days after submitting the additional information/ documentation.
The final decision will be sent to the applicants as an attachment in an email within five business days of the decision being made. The applicants should not make a request which is identical to a previously rejected request filed to the FTA. In such cases, the FTA will reject the new request. The tax registrant will not be aware of the existence of the previously rejected applications. However, tax agents in Dubai who possess expertise in the FTA norms can help the applicants avoid potential rejections.
How Can Jitendra Chartered Accountants Help?
Excise tax registrants are allowed to request to the FTA to retain alternative evidence to prove export of excise goods from the UAE in case they are unable to provide commercial or official evidence. The FTA grants the request if the applicants can prove that they are unable to provide the commercial or official evidence to reasons that are beyond their control. The applicants may face the risk of rejection if the applications are prepared with incomplete or incorrect details. However, applying through tax consultants in Dubai, such as Jitendra Chartered Accountants (JCA) provide a robust solution to prevent any likely rejection or delays.
JCA is one of the most experienced tax consultancy firms in Dubai with a strong reputation among the businesses and government bodies, including the FTA. JCA’s team is composed of the most efficient tax agents in Dubai who ensure accuracy and legal compliance in the applications made to the FTA. The strong legal know-how and commitment to the clients make JCA one of the most trusted tax consultancy firms in Dubai.