Vaping devices with DTS permitted
1st January 2021,FTA will permit devices with DTS
Vaping devices with DTS permitted
The Federal Tax Authority, FTA, has confirmed that as of 1st January 2021, it will not be permitted to sell (supply), transport, store or possess any waterpipe tobacco or electrically heated cigarettes UAE unless they bear the Digital Tax Stamp (DTS).
As per Cabinet Decision No. (33) of 2019, the Authority urged those concerned and affected by the decision to comply, including local suppliers and manufacturers, to ensure that their water pipe tobacco products and electrically heated cigarettes carry a tax stamp to avoid the violations mentioned in the Cabinet Decision No. (33) of 2019 on administrative penalties for violations of procedures related to the implementation of marking excise goods.
DTS system helps the FTA improve its ability to collect the excise tax
The DTS system helps the FTA improve its ability to collect excise tax charged on waterpipe tobacco or electrically heated cigarettes in the UAE after being imported or manufactured locally and strengthening control over these products and enabling stakeholders to analyse the supply chain to control illicit tobacco product better.
Besides, the DTS system allows for implementing compliance standards by enabling the monitoring and tracking compliant tobacco products. Accordingly, the FTA reaffirms the need for all companies, manufacturers and suppliers of tobacco and tobacco products to comply with the system and cooperate with the Authority to implement it accurately and effectively.
DTS system facilitates inspection and control
The FTA explained that the DTS system facilitates inspection and control at customs outlets and local markets, to ban contraband products and combat commercial fraud.
The digital stamps will be placed on tobacco products packages and registered in the FTA database; the DTS contains data that can be read with a special device to ensure all taxes due to these products have been paid.
The Authority indicated that the system operates according to a specific and deliberate mechanism, as the DTS feature many advantages that contribute to combating the illicit trade of tobacco products. When orders are made for these stamps, they are sent to factories to be placed individually. This will ensure each package is tracked to the port of entry of each country, with the supplier submitting the permit form and the fees for the digital stamps will be paid for when the suppliers request them. This will ensure all digital stamps are registered and tracked through a central database.
Marking Tobacco. Tobacco Product scheme.
The Authority mentioned that as of 1st of March 2020, importing water pipe tobacco products and electrically heated cigarettes that do not carry digital tax stamps are banned instead of implementing phase 2 of the ‘Marking Tobacco. Tobacco Product scheme.’ The scheme went into effect after the successful implementation of phase 1, which banned the sale (supply), transfer, storage or possession of all types of cigarettes that do not carry digital tax stamps in local markets.
As for applying for digital stamps, the FTA said that the manufacturer or supplier needs to download the application form the FTA website (tax.gov.ae/dts) and complete the required data. They are then required to send the request to ([email protected]) to receive a user name and password to log in to the (DLR) system. The final step is to go to the ‘Manage Orders’ section where the DTS applicant will record basic information to complete the application, including the target market (UAE market or duty-free).–WAM