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UAE FTA EXTP007 Public Clarification for Deficient/Missing Goods Treatment and Destruction

UAE FTA EXTP007 Public Clarification for Deficient/Missing Goods Treatment and Destruction

UAE (FTA) Federal Tax Authority issues a new public clarification, EXTP007, to shed light on the treatment of UAE excise tax on missing or deficient excise goods and the official process on how to destroy excise goods within UAE designated zones.

Key Points Under EXTP007 Public Clarification

Under this clarification for excise tax UAE, the following are the key points that are discussed:


An exception to Executive Regulation Article 12(3)(d) is available in the following situations:


1. The warehouse keeper who is responsible for the excisable goods notifies the Federal Tax Authority within thirty (30) days of detecting the deficit in the supply or shortage in quantity;

2. In the event that the tax authority acknowledges that the deficit or shortage of excisable goods is the result of a valid reason.


In the event that all of the aforementioned conditions are satisfied, the taxable person won’t be obliged to account for the deficient or missing excise goods.


Valid Reasons for Destruction of Excisable Goods

If the excisable goods need to be destroyed, the process of destruction must not be commenced until the competent authority, in this case the Federal Tax Authority, has issued its approval.


The valid causes or legitimate reasons accepted by the Federal Tax Authority are as follows:


Natural wastage or shortage


Common examples are unintentional contamination, spoiling, shortage and other similar occurrences. Supporting documentation that must be presented to the Federal Tax Authority include:



Shortage or wastage during the production


It’s for excise goods which have been lost during the manufacturing or production process up to FTA’s allowable threshold. Supporting documentation that must be supplied to the tax authority such as production reports indicating volume(s) of production, volume(s) produced from the production, and percentage of the product wasted.


Force Majeure


In such case, the excisable goods have already been destroyed from reasons that are beyond anyone’s control and no intervention can help either from the taxable person or warehouse keeper. The following supporting documentation will be necessary:



If you want to know how to get excise tax relief in UAE for missing/deficient goods, you should know that the taxable person who has undergone excise tax registration UAE has to complete the form, EX203B or the Lost & Damaged Declaration, and have it approved by the warehouse keeper who is responsible for the relevant Designated Zone. The declaration must then be submitted to UAE Federal Tax Authority within thirty (30) days of discovery of shortage or deficiency along with the supporting documents.


Supporting documents can be submitted via email at If the destruction of excisable goods is necessary, the declaration submitted to the Federal Tax Authority with the help of excise tax experts in UAE must include approval of a competent authority e.g. the Municipality or the Customs Authority. Permission must be obtained from the competent authority for the destruction process of excisable goods. Approval must also specify how the destruction process will be carried out.


Granting of partial or full excise tax relief in UAE will be at the discretion of the Federal Tax Authority UAE. If you want more information on how to get partial or full excise tax relief in UAE, consult with reputable tax specialists. The UAE tax authority may notify a warehouse keeper of the agency’s intent to inspect the relevant excisable goods, allow the disposal or destruction of the goods without further inspection, or reject the request entirely. A taxable person or Registrant is required in providing a Destruction Certificate issued by a party that’s responsible for the approved process of destruction.


For further information on the EXTP007 Public Clarification and for support in regulatory compliance, reach out to the Dubai excise tax specialists of Farahat & Co today!


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