Dubai July 1, 2022:

The Federal Tax Authority (FTA) has issued a public clarification EXTP007 offering guidance on excise goods. The guide explains the scenarios where relief from excise tax may be granted for excise goods that are found to be deficient, shortage, considered as wastage, or where goods are intended to be destroyed.

The highlights of the public clarification are as follows:

Excise goods that are considered wastage or deficient when located within a designated zone will be treated as released for consumption and therefore will be subject to excise tax. However, as an exception, goods will not be considered to be released for consumption where:

Where these conditions are met, a taxable person will not be required to account for excise tax on deficient or missing goods.

View more in the guide.