UAE Federal Tax Authority (FTA) has recently published a public clarification on "Deregistration of Stockpilers" (Excise Tax Public clarification - EXTP004). Below are the highlights of the FTA Public Clarification.
- As per Article 7(1) of Executive Regulations on Excise Tax Law, there are certain cases, in which FTA may reject Excise Tax Deregistration application. And, one of those reasons is: “If less than six months have passed since the person was registered for Excise Tax.”
- This Public clarification discusses the circumstances in which Stockpilers may be allowed to deregister before six months have elapsed since their effective date of registration
- Conditions that must be met before submitting a deregistration application:
- The registered person has met all his tax obligations including filing of declarations, submission of tax returns and payment of all due tax
- The registered person does not conduct or has no intention to conduct any of the excisable activities in the future i.e.
- Production of Excise Goods
- Importation of Excise Goods
- Release of excise goods from a Designated Zone
- Documents which may be requested by FTA to validate the deregistration application:
- A copy of their audited records, showing the quantity of stock of excise goods on the date the liability to account for Excise Tax on those goods arose;
- Records of the quantity of stock and sales of excise goods for the 12 months prior to that date
- A copy of the calculations prepared to determine whether the Person held excess excise goods on the date the liability to account for Excise Tax on those goods arose;
- Evidence that supports that Excise Tax has been paid on the excess excise goods
FTA may ask for further documents as well and will consider each deregistration application on a case-to-case basis.
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