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Standards, Controls and Procedures for Dealing with Shortage Within the Designated Zone due to the Natural Characteristics of Excise Goods
Effective 1 July 2025, the Federal Tax Authority (FTA) has introduced a pivotal regulation through Decision No. 6 of 2025, setting clear standards, controls, and procedures for addressing natural shortages of excise goods within designated zones in the UAE.
This marks a significant step forward in resolving a long-standing area of uncertainty for excise industries, providing a structured legal framework to deal with losses that occur naturally due to the inherent characteristics of excise goods.
The Decision formalizes how natural shortages – such as evaporation, leakage, or other unavoidable losses – should be measured, documented, and reported. This change impacts tobacco, shisha, beverage, and vape liquid industries, and will require businesses to reassess their operational, reporting, and compliance processes.
Why This Matters
Under the previous framework, the treatment of natural shortages was often unclear, leading to inconsistent practices and potential tax exposure. Now, with Decision No. 6 of 2025:
Key Highlights of the Decision
Industry Implications at a Glance
Preparing Your Business for Compliance
With the Decision coming into force on 1 July 2025, excise businesses should act now to:
Download the full article here to ensure your business is ready to meet the new compliance standards and avoid unnecessary tax liabilities.