UAE FTA Sets New Standards for Managing Natural Shortages of Excise Goods in Designated Zones

• UAE FTA issued Decision No. 6 of 2025 on June 17, 2025, effective July 1, 2025
• Establishes standards and requirements for managing natural shortages of excise goods in Designated Zones
• Clarifies Article 12(5)(b) of the Excise Tax Executive Regulations regarding permissible losses
• Warehouse keepers and taxable persons must request an assessment from an approved Independent Competent Entity
• Assessment based on physical inspection and six months of operational data
• Report valid for 12 months, with different parameters for new products
• Evidence of shortages must be maintained and declared to the FTA
• Declaration must not exceed approved shortage percentage and cover no more than six months
• Compliance monitored through inspections and audits
• Reports issued within six months of July 1, 2025, valid retrospectively and for one year
• FTA to publish a list of approved entities for assessments
• Decision provides clarity on permissible losses and compliance for businesses in Designated Zones
• Companies must review compliance processes and secure certified assessments before implementation

Source: mailchi.mp

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

---

---