# Excise Tax Scenarios: Producers
- Source page: https://solvefortax.com/legislation/346
- Topic: Excise
- Type: Guide
- Status: Active
- Chapter: V. Tax Calculation and Payment
- Official PDF: https://solvefortax.com/api/pdfs/Excise-Tax-Scenarios-Producers-EN.pdf
- Publisher: Solve for Tax, UAE Tax Law Library (https://solvefortax.com/)
## Summary
This guide provides producers of excise goods in the UAE with practical scenarios and corresponding declaration requirements for excise tax compliance. The document outlines specific filing obligations based on different operational contexts: production in free circulation, production within designated zones, exports, and use of taxed goods in subsequent production. For producers manufacturing excise goods in free circulation, a monthly Production declaration (Form EX202B) must be submitted with simultaneous tax payment. Production within designated zones defers tax liability until release, requiring either Form EX201 or EX202C depending on customs clearance requirements. The guide also addresses tax deduction mechanisms through Form EX203 for scenarios involving exports or the use of previously-taxed excise goods in new production. It clarifies the distinction between freezones and designated zones, emphasizing that designated zone status requires FTA approval and formal appointment of a Warehouse Keeper.
## Key points
• Producers manufacturing excise goods in free circulation must submit a monthly Production declaration (Form EX202B) at the end of every month declaring all goods produced during that period
• Excise tax payment is due at the point of filing the excise tax return for goods produced in free circulation
• Production declaration Form EX202B is found under 'Excise Goods that do not require Customs Clearance'
• Excise goods produced within a designated zone are not subject to excise tax until released from the designated zone
• Upon release from designated zone, producers must file either Declaration EX201 (for goods requiring Customs Clearance) or Form EX202C (Tax Liability on Release from Designated Zone not requiring Customs Clearance)
• Producers who export previously-taxed excise goods outside the UAE must submit a Deductible Excise Tax form (EX203) declaring the tax originally paid
• Evidence of tax payment (e.g., production declaration) must be uploaded as proof when claiming deductible excise tax for exports
• The tax originally paid on exported goods will be deducted from the excise tax liability on the excise tax return
• Producers who use previously-taxed excise goods to produce another excise good must submit Form EX203 to claim deduction for the tax originally paid on the input goods
• Evidence of tax payment (e.g., import declaration) must be uploaded when claiming deductible excise tax for goods used in subsequent production
• A Freezone is not automatically a designated zone; designated zone status requires FTA approval
• A Designated Zone must be appointed with a Warehouse Keeper and may include a fenced freezone or another approved area
• A Designated Zone can be identified by requesting its Designated Zone reference number
• All declarations are found within 'Excise Tax Returns and Declarations' on the E-Services portal
## This document relies on
- [Federal Decree-Law No. 7 of 2017 on Excise Tax and amendments](https://solvefortax.com/legislation/74) (implements)
- [Cabinet Decision No. 37 of 2017 on the Executive Regulation of the Federal Decree-Law No. 7 of 2017 on Excise Tax](https://solvefortax.com/legislation/105) (implements)
## Full text
# Excise Tax Scenarios: Producers
You should use the table below if you are a producer of excise goods in order to identify the declarations you will be required to file in certain scenarios.
Excise Tax declaration forms can be found at the following link.
| If you are….. | …. and you….. | ….then…. | Declaration* |
|---|---|---|---|
| A producer | produce excise goods in free circulation | You must:
1. submit a **Production declaration** declaring everything which has been produced during that month, at the end of every month; and
2. **pay the excise tax** due **at the point of filing** your excise tax return | Tax liability on Production Form **EX202B** found under “Excise Goods that do not require Customs Clearance” |
| A producer | produce excise goods within a designated zone** | The goods are **not subject to excise tax until** the point they are **released from the designated zone.** | **Upon release, EITHER:**
Declaration **EX201** found under “Excise Goods that require Customs Clearance”
**OR**
Tax Liability on Release from Designated Zone not requiring Customs Clearance form **EX202C** found under “Excise Goods that do not require Customs Clearance” (depending on whether there is a customs check at the point of release from the designated zone) |
| A producer who has paid excise tax on excise goods | export the goods outside the UAE | You must:
1. submit a **Deductible Excise Tax form** declaring the tax originally paid on the goods (e.g. on production)
2. upload evidence the tax was paid (e.g. production declaration) as proof of any claim for deductible excise tax, as well as any evidence provided by Customs if applicable
**The tax originally paid will then be deducted** from your excise tax liability on your excise tax return. | Deductible Excise Tax form **EX203** |
| A producer who has paid excise tax on excise goods | use the goods to produce another excise good and have paid excise tax on the new excise good | You must:
1. submit a **Deductible Excise Tax form** declaring the tax originally paid on the goods which were used to produce another excise good;
2. upload evidence the tax was paid (e.g. import declaration) as proof of any claim for deductible excise tax, as well as any evidence provided by Customs if applicable.
**The tax originally paid will then be deducted** from your excise tax liability on your excise tax return. | Deductible Excise Tax form **EX203** |
**\*NOTE:** Declarations are found within ‘Excise Tax Returns and Declarations’ on the E-Services portal.
**\*\*NOTE:** A Freezone is not automatically a designated zone. A Designated Zone must be approved by the FTA and appointed with a Warehouse Keeper and may include a fenced freezone or another approved area. A Designated Zone can be identified by requesting its Designated Zone reference number.