Tuesday, 02 January 2024 12:17 GMT

Federal Tax Authority And Abu Dhabi Quality And Conformity Council Launch Service For Measuring Natural Loss In Excise Goods To Exempt Losses Resulting From Natural Characteristics From Tax Obligations


(MENAFN- Mid-East Info) Dubai, UAE –October 2025: In a new step toward enhancing product quality and the accuracy of technical inspections, the Abu Dhabi Quality and Conformity Council (QCC) announced the signing of a Service Level Agreement with the Federal Tax Authority (FTA) to launch a specialised technical consultancy service for all manufacturers in the UAE, which will measure the actual natural loss of excise goods. The agreement was signed by H.E. Khalid Ali Al Bustani, Director-General of the FTA, and H.E. Eng. Fahad Gharib Al Shamsi, Acting Secretary-General of the QCC, on the sidelines of 45th edition of GITEX Global 2025, being held at the Dubai World Trade Centre. This initiative implements FTA Decision No. 6 of 2025 regarding the standards, controls, and procedures for handling natural loss within designated zones, resulting from the natural properties of excise goods. Under this decision, the Central Testing Laboratory of QCC was accredited as the first independent technical entity authorised to conduct tests and technical examinations of excise goods. The new“Actual Natural Loss Measurement Service for Excise Goods” aims to determine the rate of natural loss occurring during production, storage, or transportation – when the loss results from the nature of the goods themselves (e.g., evaporation). This is one of the key criteria required for exemption from tax obligations on excise goods that have become unfit for consumption due to their natural characteristics, within the designated zones registered with the FTA for excise tax purposes. The service provides accurate, data-driven reports through sample collection, laboratory testing, and analysis of production, storage, and transport conditions – enhancing the reliability of data submitted to the FTA. Relevant entities and businesses can now benefit from the service by reviewing its steps and requirements via the FTA's official website, under the section for declaring lost or damaged excise goods. The service is also available to excise taxpayers and registered warehouse keepers within designated zones, in accordance with FTA-approved regulations, supporting tax compliance and ensuring fair and transparent application of procedures. The signing of the agreement and launch of this new service reflects the ongoing cooperation between both entities and their shared commitment to providing distinguished services based on cutting-edge laboratory testing technologies. This follows a visit by an FTA delegation to QCC headquarters, where they explored the council's facilities, technologies, and testing methods – in particular, those related to the natural properties of excise goods and measurement of product loss during production, storage, and transportation. H.E. Khalid Al Bustani emphasised the importance of today's agreement, noting that it establishes an effective framework for cooperation, as well as an enhancement of coordination and information exchange between both entities. This is especially relevant in the areas of technical testing and analysis of excise goods. His Excellency also noted that this initiative supports the FTA's plans to promote voluntary compliance in line with best practices in governance and transparency and praised QCC's vital role in strengthening the quality infrastructure, in Abu Dhabi. His Excellency added that this step aligns with the FTA's efforts to provide proactive and sustainable services in collaboration with its strategic partners across government and private sectors, enhancing transparency and achieving the highest levels of efficiency and reliability in tax procedures. This is consistent with the government's vision for an integrated, innovative, and efficient institutional ecosystem. Commenting on today's agreement, H.E. Eng. Fahad Gharib Al Shamsi said:“This agreement reaffirms QCC's commitment to supporting national entities in developing innovative solutions based on scientific testing and precise technical analysis, thereby enhancing transparency and efficiency in tax processes and improving the quality of traded products and goods. “This strengthens trust between manufacturers and consumers and directly supports the economies of Abu Dhabi and the UAE as a whole,” H.E. Al Shamsi added. Providing this specialised consultancy service to manufacturers is a strategic step to enhance the competitiveness of Emirati products locally and internationally, reaffirming the leadership of QCC – and Abu Dhabi, as a whole – in implementing the highest standards of quality and conformity across markets.” Abu Dhabi QCC is a leading government entity that aims to develop the infrastructure of quality and conformity in the emirate, ensuring the safety of locally traded products and goods. The Council operates the Central Testing Laboratory, which provides advanced testing and precise evaluations to support manufacturers and various economic sectors. Federal Tax Authority: The Federal Tax Authority was established by Federal Decree-Law No. 13 of 2016 to help diversify the national economy and increase non-oil revenues in the UAE through the management and collection of federal taxes based on international best practices and standards, as well as to provide all means of support to enable taxpayers to comply with the tax laws and procedures. Since its inception in 2017, the FTA has been committed to cooperate with the competent authorities to establish a comprehensive and balanced system to make the UAE one of the first countries in the world to implement a fully electronic tax system that encourages voluntary compliance, with simple procedures based on the highest standards of transparency and accuracy – beginning from registration, to the submission of tax returns, to the payment of due taxes through the Authority's website: About Abu Dhabi Quality and Conformity Council: Abu Dhabi Quality and Conformity Council (QCC) is an Abu Dhabi government entity established in accordance with Local Law No. (3) of 2009 to raise the quality of Abu Dhabi's exports and products traded locally. QCC consists of a council of regulators and industry with a mandate to ensure provision of quality infrastructure in line with global standards. QCC's functions are divided into six key areas: developing standards and specifications, capacity building of metrology systems, strengthening testing infrastructure, launching conformity schemes, protecting consumer interests, and ensuring fair trade. QCC's key stakeholders include regulatory authorities, consumers, retailers and wholesalers, industry, conformity assessment bodies (CABs) and importers. QCC supports regulators and government organizations through offering quality and conformity facilities, expertise and resources that allow them to implement products safety and compliance requirements and regulations. Additionally, QCC works towards promoting a culture of quality and protecting the interests of consumers. In doing this, QCC seeks to promote Abu Dhabi's competitiveness to become one of the world's most attractive regions for investments and human capital, and to support the competitiveness of national industries in world markets.


MENAFN16102025005446012082ID1110208011



Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.