Ensuring regulatory integrity, audit readiness, and risk mitigation in the UAE

Under Federal Decree-Law No. 7 of 2017 on Excise Tax and its Executive Regulations under Cabinet Decision No. 52 of 2019, businesses dealing with Excise Goods (producers, importers, stockpilers, and warehouse keepers) are subject to continuous compliance oversight by the Federal Tax Authority (FTA).

Given the single-stage nature and heavy financial impact of Excise Tax (up to 100%), non-compliance or accounting misalignments can lead to severe administrative penalties, customs holds, and unexpected tax liabilities. At CLA Emirates, our specialized indirect tax team conducts comprehensive Excise Tax Compliance Reviews to ensure that operational workflows, tax return calculations, and inventory reconciliations align perfectly with statutory obligations.

An excise compliance review performed by CLA Emirates is a health check designed to evaluate an entity's readiness for official FTA audits, verify accurate tax reporting, and identify hidden compliance exposures before they result in penalties.

As a leading audit and tax consulting firm in the UAE, CLA Emirates brings extensive local expertise and direct experience in handling complex FTA reviews and audits.

Our review process equips your team with:

  • A detailed gap analysis & risk matrix report identifying compliance exposures.

  • Reconciled working templates bridging ERP/WMS data to FTA portal declarations.

  • Practical recommendations to streamline inventory tracking, product registration, and monthly filing routines before an official FTA inspection occurs.

Core areas covered in a CLA Emirates compliance review

FTA product clearinghouse & classification audit

  • Verifying that every SKU handled by the business is properly registered on the FTA online portal (Clearance System).

  • Reviewing product lab analysis reports (e.g., sugar/sweetener levels in beverages, carbonation levels, tobacco ingredients) to prevent misclassification and default high-rate assessments.

Monthly return (Form EX201) & reconciliation audit

  • Reconciling monthly return filings with General Ledger (GL) accounts, customs import data, and warehouse management system (WMS) logs.

  • Verifying that tax returns and payments are executed prior to the strict statutory deadline—the 15th day of the subsequent month.

Designated zone (DZ) & transit compliance

  • Reviewing the movement of goods entering, exiting, or transferring between Designated Zones.

  • Ensuring that temporary tax suspension status is maintained with proper movement documentation to prevent automatic tax triggering.

Review of deductions & refund claims

  • Evaluating refund eligibility for tax paid on exported goods or bad debt claims.

  • Ensuring full compliance with supporting evidence requirements to avoid FTA rejection of deduction claims.