Can excise tax be refunded on exported goods?

Article 22 – Tax Refunds in Special Cases12 1. Where Tax is paid by a foreign government, international organisation, diplomatic bodies and missions, a claim for a refund of such Tax may be made subject to the following conditions: a. Excise Goods were acquired exclusively for official use, b. the country in which the relevant foreign government, international organisation, diplomatic body or mission is established or has its official seat, 12 Amended by Cabinet Decision No. 108 of 2023, Clause (3) and (4) of this Article will come into effect from 1 June 2024. Cabinet Decision No. 37 of 2017 and its amendments – Unofficial translation 22 excludes the same type of entities that belong to the State from the burden of any Excise Tax in that country, or the refund is consistent with the conditions of any international treaties or agreements concerning the liability to Tax of such foreign government, international organisation, diplomatic body or mission, and c. the Excise Goods are not acquired for the purposes of resale or any other commercial purposes. 2. Where Tax has been incurred in the State by a Person who is registered in an Implementing State, and the Excise Goods were then exported to another Implementing State and Tax was paid in that Implementing State, a claim for a refund of the Tax may be made subject to the following conditions: a. that Person is not registered in the State, b. evidence is provided confirming that the Person is a taxable person in another Implementing State, c. evidence is provided confirming that Tax was paid on the Excise Goods in the State, where the evidence includes the value of the Tax paid, d. evidence is provided confirming that the Excise Goods were exported to another Implementing State, and e. evidence is provided confirming that Tax was paid on the Excise Goods in another Implementing State. 3. If a non-Taxable Person who is conducting business, directly exports Excise Goods for which Tax was previously paid by a Taxable Person, he may submit a refund application subject to the following conditions: a. the Excise Goods are physically exported to a place outside the State, b. he submits evidence proving payment of Tax on the Excise Goods in the State, provided such evidence proves the amount of paid Tax, c. he retains any of the following: 1) a customs declaration, and a Commercial Evidence that proves the Export, or 2) a Shipping Certificate and an Official Evidence that prove the Export. Cabinet Decision No. 37 of 2017 and its amendments – Unofficial translation 23 d. the Excise Goods are not used, partially or fully, or altered in the time between supply and Export, except to the extent necessary to prepare the Excise Goods for Export. 4. If a non-Taxable Person who is conducting business, indirectly exports Excise Goods for which Tax was previously paid by a Taxable Person, he may submit a refund application subject to the following conditions: a. the Overseas Customer physically Exports the goods supplied to a place outside the State, b. he submits evidence proving payment of Tax on the Excise Goods in the State, provided such evidence proves the amount of paid Tax, c. he obtains from the Overseas Customer or his representative any of the following and submits a copy to the supplier: 1) a customs declaration, and a Commercial Evidence that proves the Export, or 2) a Shipping Certificate and an Official Evidence that prove the Export. d. the Excise Goods are not used, partially or fully, or altered in the time between supply and Export, except to the extent necessary to prepare the Excise Goods for Export. 5. The Authority may decide not to accept the documents submitted if they do not constitute sufficient evidence of the exit of the Excise Goods from the State, and may specify alternative forms of evidence according to the nature of the Export or the nature of the Excise Goods being exported. 6. For the purposes of this Article, customs departments must verify the type and quantity of exported Excise Goods with the export documents issued thereby according to their customs procedures in force, and based on the classification of the tax risk matrix that is specified in coordination with the Authority. 7. Subject to Article 21 of the Decree-Law, a refund of Tax may be made according to the following controls and conditions: a. the claim should contain the information, data and documents specified by the Authority and be submitted through means as specified by the Authority, b. the claim relates to a minimum period of one month, and Cabinet Decision No. 37 of 2017 and its amendments – Unofficial translation 24 c. the claim relates to Tax paid on goods where the goods have a value not less than the value prescribed by a decision issued in this regard by the Minister. 8. The Authority shall issue a decision regarding whether to approve or reject the refund claim made under this Article within (20) twenty business days of an application being submitted. Title Eleven – Keeping of Tax Record

Article 22 – Tax Refunds in Special Cases17 1. Where Tax is paid by a foreign government, international organisation, diplomatic bodies and missions, a claim for a refund of such Tax may be made subject to the following conditions: a. Excise Goods were acquired exclusively for official use, b. the country in which the relevant foreign government, international organisation, diplomatic body or mission is established or has its official seat, excludes the same type of entities that belong to the State from the burden of any Excise Tax in that country, or the refund is consistent with the conditions of any international treaties or agreements concerning the liability to Tax of such foreign government, international organisation, diplomatic body or mission, and c. the Excise Goods are not acquired for the purposes of resale or any other commercial purposes. 2. Where Tax has been incurred in the State by a Person who is registered in an Implementing State, and the Excise Goods were then exported to another Implementing State and Tax was paid in that Implementing State, a claim for a refund of the Tax may be made subject to the following conditions: a. that Person is not registered in the State, b. evidence is provided confirming that the Person is a taxable person in another Implementing State, c. evidence is provided confirming that Tax was paid on the Excise Goods in the State, where the evidence includes the value of the Tax paid, d. evidence is provided confirming that the Excise Goods were exported to another Implementing State, and e. evidence is provided confirming that Tax was paid on the Excise Goods in another Implementing State. 3. If a non-Taxable Person who is conducting business, directly exports Excise Goods 17 Amended by Cabinet Decision No. 108 of 2023, Clause 3 and 4 of this Article will come into effect from 1 June 2024. Cabinet Decision No. 37 of 2017 and its amendments – As published by the Ministry of Finance 23 for which Tax was previously settled by a Taxable Person or a Person who is excepted from Tax Registration according to the provisions of Article 4 of this Decision, he may submit a refund application subject to the following conditions:18 a. the Excise Goods are physically exported to a place outside the State, b. he submits evidence proving payment of Tax on the Excise Goods in the State, provided such evidence proves the amount of paid Tax, c. he retains any of the following: 1) a customs declaration, and a Commercial Evidence that proves the Export, or 2) a Shipping Certificate and an Official Evidence that prove the Export. d. the Excise Goods are not used, partially or fully, or altered in the time between supply and Export, except to the extent necessary to prepare the Excise Goods for Export. 4. If a non-Taxable Person who is conducting business, indirectly exports Excise Goods for which Tax was previously settled by a Taxable Person or a Person who is excepted from Tax Registration according to the provisions of Article 4 of this Decision, he may submit a refund application subject to the following conditions:19 a. the Overseas Customer physically Exports the goods supplied to a place outside the State, b. he submits evidence proving payment of Tax on the Excise Goods in the State, provided such evidence proves the amount of paid Tax, c. he obtains from the Overseas Customer or his representative any of the following and submits a copy to the supplier: 1) a customs declaration, and a Commercial Evidence that proves the Export, or 2) a Shipping Certificate and an Official Evidence that prove the Export. d. the Excise Goods are not used, partially or fully, or altered in the time between supply and Export, except to the extent necessary to prepare the Excise Goods for Export. 18 Amended by Cabinet Decision No. 198 of 2025, Clause 3 will come into effect from 1 January 2026. 19 Amended by Cabinet Decision No. 198 of 2025, Clause 4 will come into effect from 1 January 2026. Cabinet Decision No. 37 of 2017 and its amendments – As published by the Ministry of Finance 24 5. The Authority may decide not to accept the documents submitted if they do not constitute sufficient evidence of the exit of the Excise Goods from the State, and may specify alternative forms of evidence according to the nature of the Export or the nature of the Excise Goods being exported. 6. For the purposes of this Article, customs departments must verify the type and quantity of exported Excise Goods with the export documents issued thereby according to their customs procedures in force, and based on the classification of the tax risk matrix that is specified in coordination with the Authority. 7. Subject to Article 21 of the Decree-Law, a refund of Tax may be made according to the following controls and conditions: a. the claim should contain the information, data and documents specified by the Authority and be submitted through means as specified by the Authority, b. the claim relates to a minimum period of one month, and c. the claim relates to Tax paid on goods where the goods have a value not less than the value prescribed by a decision issued in this regard by the Minister. 8. The Authority shall issue a decision regarding whether to approve or reject the refund claim made under this Article within (20) twenty business days of an application being submitted. Title Eleven – Keeping of Tax Record

Article 16 – Deductible Tax6 1. The Deductible Tax consists of the following: a. The Tax paid on Excise Goods which have been exported; b. The Tax paid on Excise Goods which have become a component of another Excise Good on which Tax has become, or will become, due; c. The Tax paid on Excise Goods which have not been sold, where the rate or amount of the Excise Tax imposed on such goods has decreased, and to the extent of the decrease in the tax rate or amount. d. The Tax paid on Excise Goods in any other cases as may be determined by the Authority and in accordance with the controls it sets. 2. The Executive Regulation of this Decree-Law shall specify the conditions and controls for deducting the Tax mentioned in clause 1 of this Article. Chapter Seven – Tax Period, Tax Return and Tax Payment

Article (9) General Principle 1. Without prejudice to the provisions of Article (8) of this Agreement, there shall be a right of refund of Tax paid on Excise Goods released for consumption in a Member State in the event of export or re-export for business purposes outside the GCC Territory. 2. There shall be a right of refund of Tax paid on Excise Goods if they are used in the production of other taxable Excise Goods. 3. For the purpose of paragraph (4) of Article (8), an application may be made to the Tax Administration in the first Member State for the refund of Excise Tax that has been paid. 4. The Ministerial Committee shall determine additional cases for tax refund in the case of non-consumption of the Excise Goods in the Member State. 5. Each Member State shall determine the conditions and procedures for refunds. Chapter 5 Exemptions