Avyanco Auditing LLC

Level 36, Burj Al Salam Tower, Trade Center First, Sheikh Zayed Road, Dubai, UAE.

Public Clarification on Warehouse Keeper Registration and Renewal in the UAE

Want to get registered as a warehouse keeper but unsure after new Public Clarification by FTA? Avynaco, with its team of Excise Tax experts, will help you with the same.

10+

Years Of
Experience

1500+ 
Audit Completed
Financial
Experts
2500+ Consultation

Government Agencies We Are Affiliated With

Navigating the New Rules for Warehouse Keepers

The Federal Tax Authority of the UAE has released an updated Public Clarification that outlines the revised requirements for the registration of warehouse keepers. 

The Clarification has revised guidelines related to supervising Designated Zones as well as the renewal of zone registrations. There are other important aspects that are related to the security and monitoring of stock. 

Businesses that deal in excise goods must carefully assess these guidelines so their operations do not get affected negatively.

Who is a Warehouse Keeper?

The new Public Clarification defines warehouse keepers as individuals who manage or plan to manage a Designated Zone for Excise Tax purposes. A warehouse keeper is legally required to register with the FTA to supervise Designated Zones. These Designated Zones must also be registered before commencing any operations. 

Businesses can consult FTA-qualified Excise Tax professionals to learn more about the duties and responsibilities of a registered warehouse keeper as per the Public Clarification. 

How to Register as a Warehouse Keeper

To register as a warehouse keeper in the UAE, you have to follow a procedure.

  • Submit an application with the FTA that contains the personal details of the applicant.
  • The application must also contain operational details along with intended activities.
  • The applicant must pay a 12-month fee for registration for each designated zone.

It is crucial to get approval before starting any operations or supervising the Designated Zones. Experienced Excise Tax consultants can help with the registration process for a seamless experience. 

Key Aspects of the Public Clarification (EXTP010)

Let’s understand the essential details and regulations around zone validity, stock tracking, infrastructure requirements, and more.

Status of Designated Zone

A Designated Zone’s status can become ‘suspended’ or ‘expired’ in case of non-compliance or non-renewal with the terms set by the Federal Tax Authority of the UAE. 

The suspension or expiration affects imports, manufacturing, and transfer from other Designated Zones. The goods inside the DZ during the suspension are regarded as released for utilisation and are liable to Excise Tax. 

Monitoring Excise Goods

Warehouse keepers need to report the month-to-month finishing stock amount of excise goods that will be in a designated zone or have already been in one. The warehouse keeper is responsible for supervising the month-end stock in the Designated Zone for a period of six months after registration.

If the month-end stock increases more than 20% of the reported quantity, the warehouse keeper must inform the FTA immediately.

Physical Security

The warehouse keeper must provide adequate proof to fulfil physical criteria. These physical criteria include – 

  • Enough space
  • Recognizable areas
  • Secured access 
  • Alarms and other security systems
  • Security lights

An FTA representative might visit the premises to ensure that all the security measures are in place. 

If FTA believes the security measures are not enough, the candidate is permitted 20 business days to execute the measures. Failing to do so will result in non-enrollment or suspension of the Designated Zone.

Stock and Record Management System

The warehouse keepers must execute an accounting and stock management system. This system must be able to provide all the necessary data about goods that are entering and exiting the warehouse. 

The system must provide the stock level at any time, their value, the amount of goods being manufactured, entering and leaving the Designated Zone, being transferred from one DZ to another, or going for export. 

Failure to comply with these requirements within 20 days after registration will lead to suspension or revocation of the registration.

 Financial Guarantee

FTA requires warehouse keepers to provide a financial guarantee within 40 business days of registration. The final amount is calculated based on the data and documentary evidence.

FTA reviews a candidate’s risk profile, as point by point in EXTP008, to come up with a number that falls between AED 175,000 to AED 25 million on meeting the FTA’s conditions. 

Process for Renewing Registration of Designated Zones

The registration of a Designated Zone is only valid for 12 months. The warehouse keeper must submit a renewal request at least 20 days before the date of expiration. 

Failure to do so will result in suspension and later expiry of the DZ. In such a scenario of late renewal, the warehouse keeper has to submit a fresh application for registration. 

Hire Avyanco’s Professional Tax Services for All Your Excise Tax Needs

Looking to register as a warehouse keeper or register in a Designated Zone? As leading experts in Excise Tax legislation and registration, we guide businesses through the entire process – from meeting eligibility criteria to submitting documents and assisting with renewals.

Our expert Excise Tax Consultants have decades of experience in resolving each and every query related to Designated Zones, imports, stock management, financial guarantees, and more. We take care of the entire registration process to make the experience smooth and hassle-free.

Whether you’re new to Excise Tax or already managing Designated Zones as a warehouse keeper, you can rely on our end-to-end support. We take care of all documentation and regulatory requirements while you focus on operations and growth.

Partner with a trusted name for hassle-free Designated Zone registration and Excise Tax compliance. Contact Avyanco Consultancy today.

Meet Our Specialists