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Excise Tax De-Registeration

A registered individual may request that the tax authority discontinue the registration of excise tax if he is no longer liable for excise tax as provided for in the law. The method is known as deregistration.

Who Has to Apply for Excise Tax De-Registration in the UAE?

When the taxable individual ends taxable practices such as importing, manufacturing or stockpiling excise products in the UAE. The taxable person may de-register via the online portal by filling in the De-Register application form. He should determine the date from which to de-register the Taxable individual.

In order to deregister within 30 days from the date when he no longer has a taxable supply, a registered individual shall inform the Authority too. According to the rules of the statute, the authority shall respond to the request for deregistration within 20 business days of receiving the letter.

To conclude the deregistration, the claimant must pay all tax payments in compliance with the statute, along with the tax returns. The claimant shall also be responsible for the amount of all civil fines payable at the time of deregistration.

What are the Conditions & Procedures for Excise Tax Deregistration?

  • All tax return applications (including final tax returns) and the collection of taxes and fines must be revised by a taxable individual. The final tax return will be filed, and the tax due will be paid in 15 days from the close of the calendar month, of which the final tax return is included.
  • Confirm and apply all four Approved Signatory Declarations (through the Dashboard web portal).
  • Calculations of products to be held on 1 October 2017 (Excel file and PDF document signed and stamped by Tax Officer or External Auditor)
  • Letter of undertaking stating that the claimant does not wish to require the importation, sale, and release of excise tax products from the specified region.
  • When the FTA announces acceptance of your application for deregistration, you will be informed of the “Pre-approval withdrawal” letter. Your deregistration status in the dashboard is updated to ‘Pre-Approved
  • You will also request a final tax return that will be produced by the program in the segment “VAT returns.” You will receive an email and an SMS message reminding you of the application’s status and inviting you to complete the pending liability charge.
  • When you have made the invoice, go to the dashboard and press the Deregister button to complete the Deregistration transaction against the Excise Tax file.
  • When you have a credit balance pending with FTA at the time of deregistration, you will have to apply first for a refund. When FTA accepts the return, FTA must review the claim for deregistration.

What are the Administrative Penalties for not deregistering?

  • If the enrolled party does not deregister during the specified amount of time according to the statute (30 days from the date from which you are supposed to apply for deregistration), the Authority would be penalized.
  • The Registrant’s inability to file a request for deregistration within the period stated in the Tax Law would result in an administrative penalty of AED 10,000 as set out in Table ( 1): Violations and Administrative Penalties about the 2017 Application of Federal Law No. (7) on Tax Procedures.