The Federal Tax Authority (FTA) has issued a new Decision No. 6 of 2025, which is intended to come into effect on 1 July 2025 (the Decision has not yet entered into force as its publication in the Official Gazette is pending).
The Decision establishes the standards, controls, and procedures for dealing with the natural shortage of excise goods within the designated zones, as provided under Federal Decree-Law No. 7 of 2017 on Excise Tax.
– The permissible percentage of natural shortage must be determined for each taxable person and each excise good within the Designated Zone based on a Report issued by an independent competent entity (Articles 2.1 and 2.3 of the Decision).
– Requests to determine the percentage of shortage must be supported by actual data covering a minimum period of six months. For newly established production lines or products, available actual data for a shorter period may be used (Articles 2.3 and 2.4 of the Decision).
– All Declarations regarding natural shortage must be supported by a valid Report issued by the independent compe...