UAE Excise Tax: New Clarification for Registration of Warehouse Keeper

There are more than 45 active free zones in the UAE and some of them are listed as designated zones by the Federal Tax Authority (FTA) for VAT purposes. As per the UAE tax regulations, every designated zone in the country needs to have an appointed warehouse keeper to oversee its operation as well as to ensure the designated zone complies with all the conditions and security requirements. However, the warehouse keeper must register with the FTA to oversee the operations of the designated zone.

The FTA has set out several conditions and requirements to register as a warehouse keeper as well as to register or renew the registration of a designated zone. The Authority has recently issued a Public Clarification in this regard (EXTP010), which will come into effect from April 1st 2023. In this article, we will provide you with more information on the conditions and requirements detailed in the Public Clarification. Tax agents in the UAE can provide you with further guidance on the matter. Keep reading to gain more insights:

Who Is a Warehouse Keeper as per EXP010?

As per the Public Clarification, a warehouse keeper is any person who operates or intends to operate a designated zone for Excise Tax purposes. Such a person is required to register with the FTA as a warehouse keeper and register each of the designated zones that he supervises or intends to supervise. FTA-approved tax agents in Dubai can provide you with more information on the responsibilities of a warehouse keeper.

How to Register as a Warehouse Keeper?

A person is not allowed to function as a warehouse keeper before registering with the FTA. For the FTA warehouse keeper registration, the applicant is required to submit an application containing details about the person and the operations that the person intends to carry out. The person who wants to register as a warehouse keeper must also submit a designated zone application in respect of each designated zone the person oversees or intends to oversee. The applicant should pay a fee for the registration of each designated zone for 12 months. Excise tax consultants in Dubai can help you with the application process.

Conditions to Register a Designated Zone for Excise Tax

The FTA has set out different conditions to determine a warehouse keeper’s eligibility to register a designated zone in the UAE. The key criteria and conditions are listed below:

  • The warehouse keeper should specify the types of excise goods that are or will be stored in the designated zone
  • The person should specify the quantity of excise goods that is or will be stored in the designated zone
  • The applicant should provide a financial guarantee in respect of the excise goods stored or to be stored in the designated zone
  • The person registering as warehouse keeper needs to provide proof that adequate physical security measures in respect of the designated zone were implemented
  • The person should provide proof that it maintains a stock and record management system which tracks goods moving into and out of the designated zone as well as transfers between designated zones

Renewal of the Designated Zone’s Registration

Warehouse keepers can register a designated zone for 12 months. It means every 12 months; the warehouse keeper is required to apply for renewing the registration of the relevant designated zone. The warehouse keeper can get the application form from the EmaraTax and the person should complete and submit it at least 20 business days before the date on which the designated zone’s registration period expires. Failing to apply for renewal within the timeframe will lead to the suspension of the designated zone for 20 business days. Tax agents in the UAE can help you with relevant guidelines.

Hire the Best Tax Agents in Dubai for all your Excise Tax Needs

The new clarification from the FTA offers critical information on registering as a warehouse keeper and renewing the registration of designated zones for Excise Tax purposes. Businesses dealing with Excise Tax goods need to have professional advice from tax agents in Dubai to ensure compliance. Jitendra Chartered Accountants (JCA) is one of the leading providers of Excise Tax services in the UAE with over 21 years of experience.

We can assist you in the registration of warehouse keepers and designated zones. We are one of the top FTA-registered tax agents in Dubai who can guide you through the process. JCA can provide assist you with excise tax compliance review, excise tax audit, and excise tax refunds. Call us today to leverage our expertise and experience in the UAE Excise Tax Laws.