New service to measure natural loss in excise goods for tax exemption

Dubai: The Federal Tax Authority (FTA) and the Abu Dhabi Quality and Conformity Council (QCC) have launched a new technical service that allows manufacturers in the UAE to measure natural losses in excise goods and claim tax exemptions for those losses.

The new “Actual Natural Loss Measurement Service” determines how much of a product is lost during production, storage, or transport due to natural causes such as evaporation or spoilage.

These findings are essential for excise taxpayers to request exemptions from taxes on goods that become unfit for consumption as a result of their natural characteristics.

The service is part of FTA Decision No. 6 of 2025, which defines the procedures for managing natural loss in designated excise zones. The QCC’s Central Testing Laboratory is now the first accredited independent entity authorised to perform such assessments.

The testing process includes sample collection, laboratory analysis, and environmental assessment to provide accurate, data-backed reports for the FTA. The results help businesses ensure compliance with tax laws while preventing overpayment on excise goods.

Manufacturers and warehouse keepers registered with the FTA can access full details and apply for the service via the FTA’s official website.

Khalid Al Bustani said the agreement “creates a clear framework for cooperation and strengthens transparency in tax procedures,” supporting voluntary compliance and efficient governance.

Eng. Fahad Al Shamsi added that the initiative “enhances trust between manufacturers and consumers” and promotes quality standards across UAE products, helping them compete globally.

The collaboration underscores Abu Dhabi’s growing role in scientific testing and conformity assessment, positioning QCC as a leader in ensuring the safety and quality of goods traded in the UAE.

The new service aligns with national goals to enhance economic competitiveness, streamline tax administration, and support sustainable industrial growth across the Emirates.