Any registered entity importing, producing or storing excisable goods can suspend/defer the payment of tax by preserving the goods in an excisable Designated Zone. A Designated Zone shall be treated as being outside the UAE for Excise Tax purposes. Designated Zones refer to ‘any fenced area intended to be a Free Zone that cannot be entered or exited except through a designated road and any area designated by the FTA as being subject to the supervision of a Warehouse Keeper’.
When a person registers as a Warehouse Keeper, they must also complete a Designated Zone registration. During the process of approval of a new Designated Zone, the FTA may specify certain conditions over the operation of the Designated Zone including the level of physical security required, the type of access which may be granted into Designated Zones, the checks Warehouse Keeper is required to make, etc.
Businesses dealing with excise goods can use Registered Designated Zones to defer the payment of Excise Tax until the goods are taken out of or consumed within the Designated Zone. Specific provisions have been defined for Designated Zones by the authority.
As an expert on Excise Tax, MBG Corporate Services can assist in the Registration of Warehouse Keeper & Designated Zones. Our team will guide you through the process with our experts answering all your queries at every step of the way. Specialised in all forms of excise legislation, you can leverage our expertise and experience to take advantage of the concessions in Excise Laws in the Designated Zones.
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