The UAE Ministry of finance announced amendments to Excise Tax Law

22 October 2022

Ajmal Khan

The law has been amended in some places to benefit the business sector, make it easier for taxable people to fulfill their obligations, reduce tax avoidance, and address other existing issues regarding the application of excise tax.


The Federal Decree-Law No. 19 of 2022 on the Amendment of Some Provisions of the Federal Decree-Law No. 7 of 2017 on Excise Tax includes the following new amendments:


1.   Person importing excise goods for purposes other than conducting business will be exempted from tax registration, remaining liable to pay the relevant excise tax on the import. An additional amendment to the same Article requires that the application for exemption from tax registration be submitted before the import activity and not when the tax is due.


2.   A new Clause has been added confirming that any person who receives an amount as tax or issues an invoice reflecting tax, must settle such amount to the Federal Tax Authority (FTA), and the amount be treated with the same treatment determined for due tax. Therefore, a person subject to tax shall pay the amounts he receives as tax to the FTA, even in cases where the tax was applied by mistake or evasion.


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