New shisha tobacco, e-cigarettes tax rule announced in UAE

His Highness Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and Minister of Finance and Chairman of the FTA have issued a verdict by which the "Marking Tobacco and Tobacco merchandise Scheme" are enforced on tobacco pipe and electrically heated cigarettes as of November 1, 2019.

Digital Tax Stamps

The decision additionally determines the dates once "Digital Tax Stamps" are created accessible, moreover because of the standards for storage them. The authority has explained that the scheme facilitates inspections at native markets and customs ports to stop the sale of contraband merchandise and product wherever the liabilities weren't paid, and combat business fraud. Digital Tax Stamps are going to be placed on packages of tobacco merchandise and registered within the FTA information.

The stamps store digital data that may be scan with a special device to verify that every one taxes due on the same merchandise are paid.

Federal Tax Authority

In a press statement issued these days, the FTA declared that the finding supports its efforts, together with relevant entities, to gather taxes, combat nonpayment, and implement uniform procedures to confirm transparency, guarantee rights, and highlight the responsibilities of all taxable persons. The FTA call No. 2 of 2019 on Implementing the Marking Tobacco and Tobacco merchandise scheme consists of 5 articles. It determines first Nov 2019, because of the date once the Digital Tax Stamps are out there to order by importers or producers of selected excise product, that embody water pipe tobacco and electrically heated cigarettes.

The decision additionally stipulated that as of March 1, 2020, it'll be prohibited to import selected excise product not bearing the stamps into the UAE, then beginning June 1, 2020, it'll not be permissible to produce, transfer, store, or possess unmarked selected excise product in UAE.

As per the choice, Digital Tax Stamps should be firmly held on before being pasted to the selected excise product in accordance with a group of minimum-security needs. The person behind for storing the stamps shall be needed to produce info, data, and records as requested by the FTA so as to verify that the provisions of the article are enforced.

The FTA's press statement went on to clarify that the choice was a part of its strategy to expand the scope of the "Marking Tobacco and Tobacco merchandise Scheme" to cover all tobacco merchandise - foreign and domestically made and distributed - which can be electronically tracked from production till they reach the top client to make sure full compliance with excise obligations.