Many businesses in the UAE store excise goods inside designated zones. But the rules and regulations on who can manage these zones often cause trouble.
The Federal Tax Authority (FTA) gave direction in the form of a Public Clarification. It explains how a warehouse keeper should register, what conditions must be met, and how designated zone registration must be renewed. With this, businesses finally have a clear path to follow.
Tax Gian breaks down the process in simple words so companies can understand what is required and avoid unnecessary trouble. Our excise tax consultants in the UAE provide special assistance regarding tax matters.
Why the FTA Issued a Clarification for Warehouse Keepers
The FTA addressed this through Public Clarification EXTP010, effective from 1 April 2023.
The clarification explains:
- Who qualifies as a warehouse keeper
- How to register
- What documents and systems must be in place
- How zone registration is renewed every 12 months
- This gives businesses clearer instructions and helps reduce compliance issues.
Excise Tax UAE: Who Is a Warehouse Keeper Under EXTP010
The FTA defines a warehouse keeper as:
A person who currently manages, or plans to manage, a designated zone for excise tax purposes.
This person must register with the FTA before taking control of the zone. It is not allowed to operate first and seek approval later. A warehouse keeper must also register each designated zone they oversee. One approval does not cover multiple zones.
Their duties include:
- Managing storage of excise goods
- Keeping track of goods entering and leaving the zone
- Ensuring all security requirements are met
- Making sure the zone always meets FTA criteria
Only a registered warehouse keeper can supervise a designated zone.
UAE Excise Tax: How to Register as a Warehouse Keeper
Registration starts with an online application. The applicant must share clear details about:
- Who they are
- The type of operations they plan to run
- The zone they want to manage
Along with this application, the person must also submit a designated zone registration request for every zone they plan to control.
A fee is charged for each zone. The fee covers a period of 12 months.
The FTA uses both applications to check if the person can meet the standards for handling excise goods. If approved, the applicant becomes an authorised warehouse keeper and can manage the designated zone.
Seek help from excise tax experts in Dubai to register as a warehouse keeper.
Main Conditions to Register a Designated Zone
The clarification provides several conditions a warehouse keeper must meet. These conditions help the FTA confirm that excise goods will be stored safely and tracked properly.
- Specify the Types of Excise Goods
The applicant must list the exact types of excise goods to be stored. These may include
- Tobacco products
- Electronic smoking devices
- Sweetened drinks
- Energy drinks
- Carbonated drinks
The FTA needs this information to assess risk and set the correct security standards.
- Specify the Quantity of Goods
The warehouse keeper must state how many excise goods will be stored inside the zone. This allows the FTA to evaluate storage capacity, operational scale, and any financial guarantee requirements.
- Provide a Financial Guarantee
The warehouse keeper must provide a financial guarantee for the excise goods stored in the zone. The guarantee protects tax revenue if something goes wrong or if goods are mishandled.
- Show Proof of Adequate Physical Security
The designated zone must have proper physical security. This includes measures such as:
- Controlled entry
- Surveillance
- Restricted access
- Secure storage areas
The warehouse keeper must show evidence that these measures are in place.
- Maintain a Strong Stock and Record System
A designated zone must have an accurate tracking system. It must record all goods moving:
- Into the zone
- Out of the zone
- Between other designated zones
The FTA requires proof that the system is functional and reliable.
Still unsure? Seek further assistance from our excise tax agents in the UAE.
Renewing the Registration of a Designated Zone
A designated zone is registered for 12 months only. To keep it active, the warehouse keeper must renew the registration each year.
The renewal form is available on the EmaraTax portal. It must be submitted at least 20 business days before the registration expires. If this deadline is missed, the designated zone is suspended for 20 business days. During suspension, operations may be interrupted.
This makes timely renewal extremely important.
How can Tax Gian help?
Tax Gian offers comprehensive excise tax services in the UAE, including tax registration, deregistration, tax group formation, tax consultancy and much more. Our excise tax experts in the UAE are available at your one call!
