When UAE Excise Tax was introduced in 2017, businesses that held existing stock of excisable goods at the point of the regime's commencement were required to submit a stockpiler declaration. Businesses importing excisable goods who maintain significant on-hand inventory are also subject to ongoing stock declaration requirements as part of their monthly excise tax compliance. Incorrect or incomplete stockpiler declarations are a common source of FTA audit findings in the excise tax space.
CashLaw Global assists UAE businesses in preparing and submitting accurate stockpiler declarations for excise tax purposes. We conduct a physical inventory review, reconcile on-hand stock against purchase records and customs import documentation, and prepare the declaration in the format required by the FTA. For businesses that submitted an initial stockpiler declaration at the commencement of the excise regime and are uncertain whether it was accurate, we provide a stockpiler declaration review.
Book a free consultation with our team and get expert guidance on stockpiler declaration in the UAE.
Book Free ConsultationA business is classified as a stockpiler if it holds an excess inventory of excise goods for business purposes that exceeds its typical two-month operational consumption average, and where those goods have not previously been subject to UAE Excise Tax.
This declaration is triggered ahead of a scheduled regulatory increase in Excise Tax rates or during structural policy updates, forcing entities to declare their physical warehouse balances and settle the appropriate tax differences.
Failing to submit an accurate declaration can result in severe administrative fines for tax evasion, retroactive tax assessments with compounding late-payment penalties, and the potential seizure of the undeclared inventory by the authorities.