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Digital Tax Stamp in UAE
Digital Tax Stamp Services in Dubai, UAE
The Federal Tax Authority of the UAE has announced that from 1 August 2019 onwards, the sale or possession of any kind of cigarettes which do not bear the Red Digital Tax Stamp will be banned in the UAE domestic market.
Digital Tax Stamp Services in Dubai, UAE
What is the Digital Tax Stamp Scheme?
The Digital Tax Stamp Scheme or the DTS is a recently introduced tax managing scheme by the FTA by which the tobacco manufacturers and stakeholders are to comply with certain improved standards while importing and selling tobacco in the UAE market. The DTS ensures unique pack marking and indoctrination with end-to-end traceability. As per this scheme, all tobacco manufacturers should use specific high-security control stamps and codes on all packs.
Aims of the DTS Scheme.
It augments the FTA to control and collect taxes on all imported or locally manufactured tobacco products sold in the UAE market.
By enabling the germane authorities to analyze and audit the supply chain, it can spot and control the illicit trade of tobacco products in the market.
It enables the authorities to track and trace the acquiescent tobacco product and thus meet the standards laid down by the WHO’s Framework Convention on Tobacco Control.
DTS milestones:-
The importers and the cigarette producers in the UAE can order stamps for application from 1 January 2019 onwards.
The UAE government won’t allow any company to import cigarette products without a digital tax stamp from 1 May 2019 onwards.
All cigarette products to be imported or produced or sold in the UAE market should have the Digital Tax Stamp on them with end-to-end traceability from 1 August 2019 onwards. But the products with a Digital Tax Stamp without end-to-end traceability may remain in the market if they are legitimately imported or produced between 1 May and 1 August 2019.
FTA Clarification for DTS System
The Federal Tax Authority of the UAE has made the following clarification for the Duty-Free products:
The Digital Tax Stamp is mandatory for all Duty-Free products in the UAE
All the inland and inbound duty-free products should carry the Red Digital Tax Stamp
All outbound duty-free products should carry a Green Digital Tax Stamp
Which industries need to register for DTS scheme?
All UAE based or international cigarette producers who import their products into the UAE for domestic sale or for duty free outlets like airports and ports.
An officially licensed importer who will purchase cigarette products in bulk from an international or domestic producer to sell or distribute in the UAE market or duty-free outlets.
Any Distributor or Supply Chain Agent or Warehouse Keeper who receives the imported goods for sale in the UAE market or duty-free outlets.
How to order for the Digital Tax Stamps-
Download the required form from the site tax.gov.ae/digital tax stamp and fill it and send it to [email protected] to get the access to DLR Certify System.
Log on to the DLR Certify System with your User Name and Pass Word.
Click on the box “Manage Orders” and record the vital information related to the order and the market for, whether UAE or Duty-Free.
Haven’t you registered for Excise Tax or DTS scheme so far? Are you an importer or a manufacturer in the UAE? Do you stockpile or sell excise goods in the UAE market? If you have a query about your Excise Tax related obligations, DTS Scheme, Company Registration for VAT in UAE, International Auditing, etc., the HayyaTax LLC is the unsurpassed to clear your doubts and assist you to move forward. Our well experienced service providers are always there for your aid.
Make a call. No botheration, no head ache! Our skilled specialists will offer you one hour free consultation.
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Frequently Asked Questions on Excise Digital Tax Stamp in UAE
The Excise Digital Tax Stamp is a unique, tamper-proof digital label that is applied to excise goods such as tobacco, energy drinks, and sweetened beverages in the UAE. It is used to verify that excise tax has been paid and ensure the authenticity of the product, preventing fraud and illegal distribution.
The Excise Digital Tax Stamp is essential for businesses to:
Ensure compliance with UAE excise tax regulations.
Authenticate the payment of excise tax on products.
Track and trace excise goods from the manufacturer to the retailer.
Reduce the risk of counterfeiting and illicit trade in excise products.
To obtain an Excise Digital Tax Stamp, businesses need to:
Register for excise tax with the UAE Federal Tax Authority (FTA).
Ensure their excise goods are approved by the FTA.
Apply for digital tax stamps through the FTA’s electronic platform.
Purchase the tax stamps based on the volume of excise goods.
Affix the digital stamps to their products before sale or distribution.
The Excise Digital Tax Stamp works by being applied to each unit of excise goods. The stamp contains a unique code that is digitally linked to the FTA’s system. This code can be scanned using a mobile app or barcode scanner to verify:
The payment of excise tax.
The authenticity of the product.
The product's movement through the supply chain.
Businesses that fail to use the Excise Digital Tax Stamp on excise goods may face:
Fines for non-compliance with excise tax regulations.
Suspension of product sales or distribution.
Audit scrutiny from the FTA, leading to further penalties.
Potential legal actions for repeated violations or fraudulent activities.
Yes, all excise goods such as tobacco products, energy drinks, carbonated drinks, and electronic smoking devices must have the Excise Digital Tax Stamp in the UAE. The FTA mandates that the stamp be affixed to ensure that excise tax is properly accounted for on these products.
Businesses can track Excise Digital Tax Stamps by:
Using the FTA’s electronic tracking system to monitor product movements.
Scanning the unique code on each stamp to check the product’s tax status.
Verifying real-time data on product authenticity, distribution, and excise tax payments using the FTA’s dedicated mobile apps or software.
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