Learn what records excise-registered businesses must maintain and how to issue excise tax invoices.
Record Keeping and Excise Invoicing
Accurate record keeping is a core compliance obligation for excise-registered businesses. The FTA requires specific records to be maintained for a minimum of five years.
What records must you keep?
Every excise-registered business must maintain:
Excise tax invoices — Copies of all excise tax invoices issued and received.
Import and export records — Customs declarations, bills of entry, and related documents for all excise goods imported or exported.
Production records — For producers: records of raw materials purchased, production volumes, and finished goods.
Stock records — Detailed inventory records showing quantities received, held, and sold/disposed of for each excise product.
Sales and purchase records — All transactions involving excise goods, including buyer/seller details and prices.
Designated zone records — For designated zone businesses: records of all goods entering, held in, and leaving the zone.
Excise tax returns — Copies of all filed returns and supporting calculations.
Financial accounts — General ledger, trial balance, and financial statements that reflect excise transactions.
Record retention period
All records must be retained for a minimum of five years from the end of the tax period to which they relate. For designated zone records, the period may be longer.
Excise tax invoices
An excise tax invoice is a specific type of invoice that must be issued when selling excise goods. It must contain:
The words "Excise Tax Invoice"
The supplier's name, address, and TRN
The date of issue
A sequential invoice number
The buyer's name and address (if a B2B sale)
A description of the excise goods
The quantity and unit price
The excise tax rate applied
The total excise tax amount
The total payable (including excise tax and VAT)
Digital record keeping
The FTA permits digital record keeping, provided:
Records are complete, accurate, and easily accessible
They can be produced to the FTA on request in a readable format
Proper backups are maintained
The system can reconstruct transactions if needed
Common record-keeping mistakes
Failing to keep separate records for excise vs. non-excise goods
Not retaining customs documentation for imports
Missing or incomplete excise tax invoices
Not keeping records for the full five-year retention period
Failing to track designated zone movements separately
Draft note: Record-keeping requirements may be updated by FTA guidance. Always verify the current requirements and consult a professional if unsure.
Practical UAE example
**Scenario: Record keeping for a tobacco distributor**
Omar runs a tobacco distribution company registered for excise tax. His monthly record-keeping includes:
1. **Import records**: Customs declarations and bills of entry for each cigarette shipment imported.
2. **Stock records**: A detailed inventory log showing opening stock, quantities received, quantities sold, and closing stock for each tobacco product.
3. **Sales invoices**: Excise tax invoices issued to each retailer, showing the TRN, product description, quantity, excise tax at 100%, and total amount.
4. **Purchase invoices**: Excise tax invoices received from his suppliers.
5. **Excise returns**: Copies of each monthly excise return filed, with supporting calculations.
Omar stores all records digitally in a cloud accounting system, with automated backups. He keeps paper copies of customs documents in a fireproof cabinet. All records are retained for five years.
If the FTA audits Omar, he can produce a complete trail from import to final sale for every excise product, with corresponding tax invoices and return filings.
Key takeaways
Excise-registered businesses must maintain detailed records of all excise transactions.
Records must be retained for a minimum of five years.
Excise tax invoices must include specific information including the TRN, excise rate, and tax amount.
Digital record keeping is permitted if records are complete, accurate, and accessible.
Common mistakes include not separating excise and non-excise records and failing to retain customs documents.
Authoritative sources
Federal Decree-Law No. 7 of 2017 on Excise Tax
United Arab Emirates — Federal Government · Federal Decree-Law No. 7 of 2017
This lesson is general educational content, not individualized tax or legal advice. Always consult a qualified professional for your specific situation.