Media ININ Economy We Trust
Abu Dhabi 27-10-2019
The Federal Tax Authority has completed preparations for the implementation of the second phase of the system of labeling tobacco and its products to include all types of hookah tobacco known as moussil and tobacco rolls intended for electric heating, which will come into effect on November 1.
The Authority confirmed that the implementation of the second phase comes as a continuation of the successful implementation of the first phase of the system, which began to prevent the sale of “Tadawul” and possession of all types of cigarettes that do not carry “digital tax stamps” in local markets as of the beginning of August, stressing that the system in addition to its importance To support the TRA’s efforts to collect taxes and combat tax evasion, it aims to protect consumers from commercial fraud and the leakage of inferior products to markets.
The Federal Tax Authority explained that all products defined by digital tax stamps covered by the system of distinctive signs are traced electronically from production until they reach the end consumer to ensure full commitment to pay the selective tax due on tobacco and its products, stressing the need for the commitment of companies supplying hookah tobacco (known as tobacco), and rolls. Tobacco intended for use by electric heating system to avoid violating tax legislation and being deprived of its business until full compliance with the requirements of the system.
HE Khalid Ali Al Bustani, Director General of the Federal Tax Authority, said that the system of “marking tobacco and tobacco products”, which was first applied in the region in the UAE, contributed to the development of inspection and control procedures at customs ports and markets, and increased accuracy and effectiveness to prevent the sale of smuggled and tax-free products. The implementation of the second phase of the system comes in accordance with the Authority’s decision No. 2 of 2019 and the timetable set by the Federal Tax Authority in coordination with the company “de la Rue” operating the system ,.
His Excellency said that “digital tax stamps” recorded in the database of the Authority are installed on the packaging of tobacco products, and each stamp includes information recorded electronically can be read by a special device through which to ensure the payment of tax on these products.
He explained that as of the first of November 2019, producers and importers of all kinds of hookah tobacco and tobacco rolls intended for electric heating will be able to issue purchase orders for “digital tax stamps” from the system supplier, after relying from the Authority to install them on the packages of these products before they leave the factory for supply. To local markets and ensure that selective tax is paid throughout the UAE.
He pointed out that starting from the first of March next 2020 will prohibit the import of all kinds of hookah tobacco, tobacco rolls intended for use by electric heating to the country without the presence of distinctive signs “digital tax stamps” on them, and from the first of June next 2020 will prevent the supply or transfer or Storing, possessing or trading all kinds of hookah tobacco and tobacco rolls intended for electric heating that do not carry “digital tax stamps” in the UAE markets and retailers will be prevented from selling these products without the “digital tax stamps” to consumers. The Council of Ministers’ Decision No. 42 of 2018 on “Marking of Tobacco and Tobacco Products” shall be fined by the person who owns or trades certain selective goods without the distinctive markings.
“In the framework of preparations for the implementation of the second phase of the system of distinctive signs of tobacco and its products, the Authority held several meetings during the last period to communicate with representatives of tobacco companies, traders and all those concerned with the application and the company implementing the system. Continuous communication with all concerned parties in the public and private sectors to harmonize the systems and meet the requirements and coordination between all relevant parties to ensure the implementation of the second phase of the system successfully and effectively.
Regarding how to apply for “digital tax stamps”, the Federal Tax Authority explained that to submit the application, the manufacturer or supplier will download the application form through the link dedicated to it through the website of the Authority and fill the required information and then send the application to the link dedicated to it via the site to obtain the user name and Enter the user name and password, select the “Manage Requests” section where the digital stamp applicant will be able to register the basic information specified to complete the application. Communicate with the customer service team through the site.
The Council of Ministers Resolution No. 42 of 2018 specified the mechanism of marking to indicate that the selective tax has been paid for these goods provided that the producer is obliged to install the distinctive marks on these selective goods within the facility of producing the selective goods immediately after packaging if produced in the country or Before import if produced outside the UAE in the manner and at the place specified by the Federal Tax Authority on each product.
