• Malik, Bur Dubai, UAE

Excise Tax Disputes

Excise Tax Disputes in Dubai

Professional Assistance for Resolving Excise Tax Disputes with the Federal Tax Authority

The Federal Tax Authority (FTA) has established very strict tax obligations for businesses engaged in import, manufacturing, stockpiling, or release of excise goods in the UAE. However, taxpayers and the FTA may disagree on excise tax assessments, penalties, registration, tax returns, refunds or compliance decisions. The UAE Excise Tax framework is mainly regulated by Federal Decree-Law No. 7 of 2017 on Excise Tax and related executive decisions issued by the UAE Government.

 

At Business Tax in UAE (BTU), our tax consultants provides Excise Tax Disputes Services in UAE to assist business review tax decisions, prepare objections, file reconsideration requests and represent them in the tax dispute resolution process. We specialize in:
  • Excise Tax objections and appeals
  • FTA audit representation
  • Penalty reductions or cancellations
  • Reconsideration requests and Tax Disputes Resolution Committee (TDRC) cases

What are Excise Tax Disputes in UAE?

The Excise Tax in UAE is an indirect tax that is levied on certain products which are considered harmful for human health or the environment. All business entities that import or produce, store and release excise goods are responsible for meeting their tax obligations, which include excise tax registration with the FTA, filing of excise tax returns, keeping records and payment of tax due.

 

The Federal Decree-Law No. 7 of 2017 on Excise Tax imposes obligations on businesses that deal with excise goods to observe the tax procedures applicable to excise tax and the tax reporting requirements. An Excise Tax dispute occurs when a business disagrees with a decision made by the FTA. The Common issues include:
  • Excise Tax assessments on taxable goods (e.g., tobacco, energy drinks, carbonated beverages, electronic cigarettes).
  • Disputes over taxable value, registration requirements, or exemptions.
  • FTA audit findings regarding record-keeping and compliance.
  • Administrative penalties for late filing, non-submission of returns, or inaccuracies.
  • Rejection of refund or zero-rating claims.
  • The UAE has a clear and structured process for resolving excise tax disputes. If a business follows the correct FTA procedures and timelines, it can challenge a decision when it believes the FTA is wrong.
Strong Compliance Support
We help businesses maintain accurate records and respond effectively to FTA inquiries and assessments.
Confidential & Reliable Service
We handle all client information with complete confidentiality and maintain high professional standards.

Who Needs Our Excise Tax Dispute Services?

Professional support is essential if your business has:
  • Received an unexpected amount of Excise Tax assessment or demand from FTA.
  • Been subject to an FTA Excise Tax audit
  • Faced significant administrative penalties
  • Disagreed with FTA interpretations of supply classification or valuation.
  • Made mistakes with previous filings of the Excise Tax which need to be corrected.
  • It is usually best to seek the help of a tax professional as early as possible in the dispute process. This will usually result in the fastest and most cost effective way of resolving the dispute.

Our Step-by-Step Excise Tax Dispute Resolution Process

We have a step by step tax dispute resolution approach.

The initial action for the first step is to request reconsideration from the FTA. The request is to be filed within 40 business days after the date of the FTA decision (as per Article 29 of Federal Decree-Law No. 28 of 2022 on Tax Procedures). Many cases are resolved at this stage by BTU’s well-documented and strong submissions.

If the FTA upholds its decision, an Objection can be filed with an independent body – the Tax Disputes Resolution Committee (TDRC) at the Ministry of Justice. Our team of tax consultants at Business Tax in UAE (BTU) will prepare and represent you through the TDRC proceedings.

 

Our tax consultants fully support businesses in dealing with Excise Tax issues in the UAE. This includes:

    • FTA Audit Support: Our firm prepares all the documents needed, manages the response to the FTA, and represents your business in the audit process.
    • Penalty Resolution: We file applications to reduce or waive penalties where permissible by law.
  • Voluntary Disclosure Assistance: We assist your business to correct previous tax mistakes with minimal impact to your finances and compliance.

 

  • Excise Tax Compliance Review: We assess your excise tax processes to ensure compliance with Federal Decree‑Law No. 7 of 2017 on Excise Tax and related regulations.

 

Why Choose Business Tax UAE (BTU)?

  • Strict Deadline Management — We carefully track all critical timelines, including the 40‑business‑day deadlines, to ensure your case is filed on time.
  • Strong Case Building — Our tax consultants prepare clear, evidence‑based submissions supported by official laws, FTA guidelines, and accurate documentation.
  • End-to-End Representation — We represent every stage of your matter, from the first FTA notice to the final resolution.
  • Local Expertise – We have an extensive knowledge of excise tax requirements throughout Dubai, Abu Dhabi and all UAE jurisdictions.
  • Industry Experience - We work with importers, distributors, manufacturers and traders of excisable goods.
  • Transparent Service – We give you honest advice, clear communication and keep you completely informed throughout the process.

Contact Business Tax UAE (BTU) for Expert Assistance

Don’t face your tax problems alone. Our experienced tax consultants can provide advice tailored to your specific needs. Book your consultation today — protect your business with reliable tax dispute resolution services in the UAE.

Frequently Asked Questions (FAQs)

The deadline for the submission of your request for reconsideration is within 40 business days from the FTA’s decision. The other appeal processes have deadlines too.

Yes. An objection submitted to the TDRC shall not be accepted if the Tax in connection with the objection has not been paid in full as outlined in the Tax Procedures Law.

 

Yes, most of the penalties of the Excise Tax can be reduced or even cancelled if proper justification is provided. We prepare cases for reduction or waiving of such penalties.

 

The laws governing an Excise Tax dispute in the UAE are Federal Decree-Law No. 7 of 2017 on Excise Tax and Federal Decree-Law No. 28 of 2022 Concerning Tax Procedures.

 

 

The time frame to resolve a reconsideration application is a maximum of 40 business days. The Ministry of Justice’s TDRC issues its decision within 20 business days, and it may extend by another 20 business days depending on the complexity of the matter under dispute.