FTA Clarifies Measures Implemented regarding DTS

UAE's Federal Tax Authority (FTA) has asserted that its recent decision to postpone the final step of phase two of the Marking Tobacco and Tobacco Products Scheme until January 1, 2021, does not affect the first two steps that were already implemented, nor does it impact the Excise Tax rates.The decision only pertains to the final step of phase two, which consists of banning the supply, transfer, storage, and possession of waterpipe tobacco and electrically heated cigarettes that do not carry the official Digital Tax Stamps (DTS) in the UAE.

The Authority explained that the decision to postpone this step came in support of Taxable Persons that were affected by the precautionary measures implemented to curb the spread of the novel Coronavirus , clarifying that this prevented certain producers, distributors, importers, and stockpilers of waterpipe tobacco and electrically heated cigarettes from meeting the previously set deadlines and selling their unmarked stock before June 1, 2020.

The Authority indicated that, as per Cabinet Decision No. (42) of 2018 and FTA Decision No. (2) of 2019 on Marking Tobacco and Tobacco Products, the first step of phase two of the Scheme went into effect on November 1, 2019, when importers and UAE-based manufacturers of waterpipe tobacco and electrically heated cigarettes could begin ordering Digital Tax Stamps to place on the packaging of their products.

Following that, and as of March 1, 2020, importing unmarked waterpipe tobacco or electrically heated cigarettes was banned in the UAE.The FTA asserted that these two steps, which have already been implemented, will remain in force and will not be affected by the decision to postpone the final step of phase two, noting that Customs Departments will be undertaking their usual checks on the designated products to ensure compliance. The new decision will not affect the ban on importing any Designated Excise Goods that do not carry the Digital Tax Stamps into the UAE

Source : FTA Press Release :  https://www.tax.gov.ae/en/press-releases/Federal-Tax-Authority-Clarifies-Measures-Implemented  

You can access Law including Guidelines, Cabinet & FTA Decisions, Public Clarifications, Forms, Business Bulletins for all taxes (Vat, Excise, Customs, Corporate Tax, Transfer Pricing) for all GCC Countries in the Law Section of GCC FinTax.