Excise Tax Scenarios: Importers
Summary
This guide provides comprehensive scenarios and filing requirements for importers of excise goods in the UAE. It outlines the specific declarations and payment obligations for both registered and non-registered importers across various situations including standard imports, imports into designated zones, exports, and movements between zones.
The document specifies when excise tax must be paid, which forms must be submitted (EX201, EX202C, and EX203), and the circumstances under which previously paid excise tax can be deducted from tax liability. It clarifies that non-registered importers may only import on an irregular basis (no more than once in a 6-month period and no more than 3 times in a 24-month period) and must pay excise tax at the time of import, while registered importers declare and pay tax at the point of filing their excise tax return.
The guide addresses seven distinct scenarios: non-registered importers bringing goods into the UAE; registered importers importing into free circulation; registered importers importing directly into designated zones with or without customs checks; registered importers moving goods in transit to designated zones; exportation of previously taxed goods; and release of goods from designated zones for export. For each scenario, it prescribes the exact declaration forms required and the timing of tax payment or deduction.
The document emphasizes the use of the Deductible Excise Tax form (EX203) to reclaim tax on goods entering designated zones or being exported, ensuring importers can recover excise tax paid on goods that ultimately do not enter final consumption in the UAE.
Important clarifications are provided regarding designated zones, noting that a Freezone is not automatically a designated zone and that designated zones must be approved by the FTA and appointed with a Warehouse Keeper. The guide specifies that goods entering designated zones without customs checks are not treated as imported until they leave the zone, while goods subject to customs checks on entry require immediate declaration with subsequent deduction when entering the zone.
All declarations are to be filed through the E-Services portal under 'Excise Tax Returns and Declarations'.
Key points
- Non-registered importers must submit an import declaration (EX201) on or before import and pay excise tax due at the same time
- Non-registered importers may only import on an irregular basis: no more than once in a 6-month period and no more than 3 times in a 24-month period
- Registered importers importing excise goods into free circulation must submit import declaration (EX201) on or before import and pay excise tax at the point of filing their excise tax return
- Goods imported directly into a designated zone without customs check are not treated as imported into the UAE until they leave the designated zone, requiring no declaration on import
- Registered importers importing into designated zones with customs checks must submit import declaration (EX201), declare tax on their return, and submit Deductible Excise Tax form (EX203) when goods enter the zone
- For goods moved in transit from UAE to designated zones, importers must submit import declaration (EX201), declare tax on return, and file Deductible Excise Tax form (EX203) when goods enter the designated zone
- Tax originally paid is deducted from excise tax liability on the return in the period where goods enter the designated zone
- Importers exporting goods on which excise tax was paid (and not previously deducted) must submit Deductible Excise Tax form (EX203) declaring the tax originally paid
- For goods released from designated zones for export (where tax was previously deducted), importers must submit either import declaration (EX201) or form EX202C depending on whether customs check occurs at release
- Import declaration (EX201) is found under 'Excise Goods that require Customs Clearance' in the E-Services portal
- Tax Liability on Release from Designated Zone form (EX202C) is found under 'Excise Goods that do not require Customs Clearance'
- Deductible Excise Tax form (EX203) must be accompanied by uploaded evidence of tax payment (e.g., import declaration) and any customs-provided evidence
- A Freezone is not automatically a designated zone; designated zones must be approved by the FTA and appointed with a Warehouse Keeper
- Designated zones can be identified by requesting their Designated Zone reference number
- All declarations are found within 'Excise Tax Returns and Declarations' on the E-Services portal
Full text · 944 words
Excise Tax Scenarios: Importers
You should use the table below if you are an importer of excise goods in order to identify the declarations you will be required to file in certain scenarios.
| If you are….. | …. and you….. | ….then…. | Declaration* |
|---|---|---|---|
| A non-registered importer** | import excise goods into the UAE | you must submit: 1. an import declaration on or before import; and 2. pay the excise tax due at the same time |
Import declaration EX201 found under “Excise Goods that require Customs Clearance” |
| A registered importer | import excise goods into free circulation in the UAE | you must submit: 1. an import declaration on or before import; and 2. pay the excise tax due at the point of filing your excise tax return |
Import declaration EX201 found under “Excise Goods that require Customs Clearance” |
| A registered importer | import excise goods immediately into a designated zone without a Customs check*** | the goods are not treated as imported into the UAE until they leave the designated zone, so no excise tax is due when the goods enter the zone | No declaration required on import |
| A registered importer | import excise goods immediately into a designated zone where Customs check the goods on entry | you must: 1. submit an import declaration on or before import; 2. declare the excise tax due at the point of filing your excise tax return; 3. submit a Deductible Excise Tax form mentioning that the goods have entered a designated zone at the time the goods are entered into the designated zone, stating the tax originally declared on the goods. 4. upload the 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 in the period where the goods enter the designated zone. |
Import declaration EX201 found under “Excise Goods that require Customs Clearance” Deductible Excise Tax form EX203 |
| A registered importer | import excise goods into the UAE (not a designated zone) which are moved in transit into a designated zone | you must: 1. submit an import declaration on or before import; 2. declare the excise tax due at the point of filing your excise tax return; 3. submit a Deductible Excise Tax form mentioning that the goods have entered a designated zone at the time the goods are entered into the designated zone, stating the tax originally declared on the goods. 4. upload the 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 in the period where the goods enter the designated zone. |
Import declaration EX201 found under “Excise Goods that require Customs Clearance” Deductible Excise Tax form EX203 |
| An importer who has paid excise tax on excise goods & have not previously deducted the excise tax paid | export the goods outside the UAE | You must submit: 1. a Deductible Excise Tax form declaring the tax originally paid on the goods (e.g. on import); 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 |
| An importer who has paid excise tax on excise goods & has previously deducted the excise tax paid | release the goods from a designated zone intending to export the goods outside the UAE | You must: 1. EITHER submit a declaration form at the point of release of the goods if the designated zone is one where there is a check by the customs department OR submit a release from Designated Zone not requiring customs clearance form at the end of every month if the designated zone is one where there is not a check by the Customs department; 2. declare the excise tax due at the point of filing your excise tax return; 3. submit a Deductible Excise Tax form can then be filed mentioning that the goods have left the UAE and stating the tax originally declared on the goods; 4. 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. |
EITHER: Import 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) Deductible Excise Tax form EX203 |
*NOTE: Declarations are found within ‘Excise Tax Returns and Declarations’ on the E-Services portal.
**NOTE: You may only import excise goods without being registered for excise tax if you are excepted from registration because you import on an irregular basis i.e. no more than once in a 6 month period, and no more than 3 times in a 24 month period.
***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.