The Federal Tax Authority (FTA) has announced that businesses must complete Corporate Tax registration within 90 days from the Date of Incorporation / MOA.
Dubai, UAE July 1, 2025: The UAE Federal Tax Authority (FTA) has announced Decision No. 6 of 2025, which outlines new standards, controls, and procedures for dealing with shortages in excise goods caused by natural characteristics within designated zones. The decision, published in the Official Gazette, became effective today. This update marks a significant development in the regulation of excise tax in UAE, particularly for goods subject to natural loss during storage or transport.
This measure applies to Warehouse Keepers and Taxable Persons handling excise goods such as tobacco products, energy drinks, and carbonated beverages where natural loss is expected during production, storage, or transport. The FTA has mandated rigorous documentation, including laboratory assessments by approved Independent Competent Entities, to determine acceptable “Natural Shortage” thresholds.
Requirements include:
Submitting inspection data covering at least six months to justify loss percentages.
Retaining detailed documentation such as manufacturing flow, formulas, and historical data.
Renewing shortage reports annually, with field verification allowed at any time by the FTA.
This move reflects the FTA’s continued commitment to ensuring tax compliance and integrity, particularly around goods prone to evaporation or deterioration due to environmental or handling factors. Reyson Badger supports businesses in navigating such regulatory changes with expert tax advisory and compliance solutions.
For a comprehensive overview, we invite you to read our blog titled 'New Standards for Natural Shortages in Excise Goods '.
