Navigating the New Rules for Warehouse Keepers
The Federal Tax Authority (FTA) of the UAE has released an updated Public Clarification outlining revised requirements for the registration of warehouse keepers. These new guidelines cover the supervision of Designated Zonesas well as the renewal of zone registrations. Additionally, the guidelines emphasize the importance of stock security and monitoring.
Businesses handling excise goods must carefully follow these guidelines to ensure smooth operations and avoid compliance issues.
Who is a Warehouse Keeper?
According to the new Public Clarification, a warehouse keeper is an individual responsible for managing or planning to manage a Designated Zone for excise tax purposes. Warehouse keepers are legally required to register with the FTA in order to supervise Designated Zones, which must also be registered before beginning operations.
Businesses are encouraged to consult with FTA-qualified excise tax professionals to understand the full scope of a warehouse keeper’s duties and responsibilities under the new regulations.
How to Register as a Warehouse Keeper
To become a registered warehouse keeper in the UAE, the following steps must be taken:
- Submit an application with the FTA, including the applicant’s personal details.
- Include operational details and the activities to be carried out in the Designated Zone.
- Pay a 12-month registration fee for each Designated Zone.
It is essential to obtain FTA approval before beginning any operations or supervising the Designated Zones. Smart Business Creation can help you through the registration process for a smooth and hassle-free experience.
Key Aspects of the Public Clarification (EXTP010)
Let’s take a closer look at the important details regarding zone validity, stock tracking, infrastructure requirements, and more.
1. Status of Designated Zone
If a Designated Zone becomes non-compliant or the registration is not renewed, its status may be suspended or expired. In these cases, the zone cannot process imports, manufacturing, or transfers from other Designated Zones. Any goods in the zone during a suspension are considered released for utilization and will be subject to excise tax.
2. Monitoring Excise Goods
Warehouse keepers must report the monthly stock levels of excise goods within the Designated Zone. The month-end stock must be supervised for six months after registration. If the stock increases by more than 20%, the warehouse keeper must notify the FTA immediately.
3. Physical Security
Warehouse keepers must meet certain physical security criteria, which include:
- Adequate storage space
- Clear, recognizable areas
- Secured access
- Alarms, security systems, and lighting
The FTA may visit the premises to ensure that all required security measures are in place. If the security standards are not met, the warehouse keeper will have 20 business days to implement the necessary changes. Failure to comply will result in non-enrollment or suspension of the Designated Zone.
4. Stock and Record Management System
Warehouse keepers must implement an accounting and stock management system capable of tracking goods entering and exiting the warehouse. The system should provide real-time data on stock levels, their value, manufacturing quantities, and transfers between zones or exports.
Non-compliance with these requirements within 20 days of registration may lead to suspension or revocation of the registration.
5. Financial Guarantee
The FTA requires warehouse keepers to provide a financial guarantee within 40 business days of registration. The amount is determined based on the applicant’s risk profile, as outlined in EXTP008, and can range from AED 175,000 to AED 25 million.
Process for Renewing Registration of Designated Zones
The registration for a Designated Zone is valid for 12 months. Warehouse keepers must submit a renewal request at least 20 days before the registration expires. Failing to do so will result in the suspension or expiration of the zone’s registration. In cases of late renewal, the warehouse keeper will need to submit a new registration application.
Smart Business Creation’s Professional Tax Services for All Your Excise Tax Needs
Whether you need to register as a warehouse keeper or handle Designated Zone registration, Smart Business Creationoffers expert guidance to help you through every step of the process. From meeting eligibility criteria to submitting documents and handling renewals, we’ve got you covered.
Our experienced Excise Tax Consultants provide comprehensive support for all aspects of Designated Zonemanagement, excise tax compliance, stock management, financial guarantees, and more. We take care of the entire process to ensure a smooth and stress-free experience.
Whether you’re new to excise tax or already managing Designated Zones, you can rely on Smart Business Creation for full support. We handle all documentation and regulatory requirements, so you can focus on growing your business.
Partner with Smart Business Creation for Hassle-Free Excise Tax Compliance
Let us simplify the Designated Zone registration and excise tax compliance process for your business. Contact Smart Business Creation today for expert advice and end-to-end support.
