UAE Excise Tax Amendments 2025: What Businesses Should Prepare for Before 2026 | RVG
The UAE continues to strengthen its tax framework with the issuance of Cabinet Decision No. 198 of 2025, introducing amendments to the Executive Regulation of the Excise Tax Law. These changes reflect a broader move toward procedural clarity, tighter compliance controls, and improved tax administration.
Effective from 1 January 2026, the amendments will impact both taxable and non-taxable persons involved in excise goods, making early preparation essential.
One of the key updates relates to tax registration procedures. The amended rules clearly define the effective date of registration for persons who become liable due to the failure of others to meet their tax obligations. Additionally, the Federal Tax Authority (FTA) is now empowered to register persons retrospectively where registration requirements were not met, closing potential compliance gaps.
The amendments also bring greater flexibility in claiming deductible excise tax. Businesses are now allowed to claim deductions in the subsequent tax period, easing administrative pressure and supporting better cash flow management.
From an operational standpoint, Customs Departments will play a more integrated role through a risk-based reconciliation process aligned with FTA assessments. This ensures closer monitoring of the type and quantity of excise goods imported or exported.
Another notable change is the alignment of refund timelines with the Tax Procedures Law, replacing the earlier fixed five-year reference. This reinforces the importance of timely refund applications and accurate documentation.
Importantly, the scope of refund eligibility for non-taxable persons has been expanded, allowing qualifying businesses engaged in exports to recover excise tax under broader conditions.
Overall, these amendments highlight the need for businesses to review their excise tax processes well ahead of 2026. Assessing registration status, deduction practices, and refund procedures now can help avoid compliance risks later.
Staying informed and prepared is key. Professional review and proactive compliance checks can ensure a smooth transition when the amendments take effect.
Read More:- https://rvguae.com/excise-tax/cabinet-decision-no-198-of-2025-analysis-of-amendments-to-the-uae-excise-tax/