FTA Decision 11/2025 — Additional cases for deducting excise tax

Factual summary

Adds two cases to the Deductible Tax under Article 16(1)(d) of the Excise Tax Law. Tax paid on samples taken out of a Designated Zone and damaged beyond recovery during the Natural Shortage inspection under FTA Decision No. 6 of 2025 can be deducted with evidence from the Independent Competent Entity. Tax overpaid on Sweetened Drinks charged at the High-Sugar Category (8 grams or more per 100 millilitres) can be deducted once a Laboratory Report proves a lower category or no Tax, for Tax Periods from 1 January 2026 ending by 30 June 2026, if the drinks were not sold before the right of deduction arose.

What it means in practice Professional insight

Who: Warehouse Keepers, sweetened-drink producers and importers. What to check: the entity's evidence for samples damaged during inspection, the Laboratory Report and earlier declaration for sugar cases, unsold stock at the time the right arose, and the 30 June 2026 cut-off.

Key provisions

• Art. 1 Definitions of Federal Decree-Law No. 7 of 2017, Cabinet Decision No. 197 of 2025 and FTA Decision No. 6 of 2025 apply; the High-Sugar Category covers Sweetened Drinks containing 8 grams or more of total sugar and other sweeteners per 100 millilitres.
• Art. 2(1) Under Art. 16(1)(d) of Federal Decree-Law No. 7 of 2017, a Taxable Person may deduct Tax paid on Excise Goods removed from a Designated Zone for inspection to determine their permissible Natural Shortage under FTA Decision No. 6 of 2025.
• Art. 2(2) Tax paid in excess on Sweetened Drinks classified in the High-Sugar Category may be deducted after a Laboratory Report proves a lower category or that they are not subject to Tax, for Tax Periods commencing on or after 1 January 2026 and ending on or before 30 June 2026.
• Art. 3(1) Controls for the inspection case: the sample is removed from the Designated Zone only for inspection by the Independent Competent Entity under Clauses 3 and 9 of Art. 2 of FTA Decision No. 6 of 2025; it was damaged during inspection and cannot be returned; and evidence from that entity of the quantity removed, the purpose and the damage is retained and submitted with the deduction request.
• Art. 3(2) Controls for the sugar case: the Sweetened Drinks were not sold before the right of deduction arose, and the request is supported by the Laboratory Report, a copy of the earlier declaration on the Authority's system showing Tax paid at the High-Sugar Category, and evidence that the goods were not sold before that time.
• Art. 4 Published in the Official Gazette and effective from 1 January 2026.