The UAE Federal Tax Authority (FTA) clarified that natural shortages of excise goods in designated zones are exempt from excise tax from 1 July 2025, provided they meet specific verification criteria. Losses due to theft, negligence or operational inefficiency remain taxable. Taxable persons must obtain an independent certification report, valid for one year, and declare shortages via EmaraTax not exceeding the permitted percentage.
The exemption takes effect on 1 July 2025.
Taxable persons must obtain an independent certification report from an FTA‑approved laboratory, valid for one year, and submit a declaration via the EmaraTax platform.
The FTA‑approved laboratory report specifies the permissible percentage for each type of excise good, and the declared shortage must not exceed that percentage.
No, shortages caused by theft, negligence, or operational inefficiency are still considered releases for consumption and remain subject to excise tax.
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