Digital Tax Stamp

Digital Tax Stamp in UAE

The Federal Tax Authority of the UAE has proclaimed that from 1 August 2019 onwards. The sale or possession of any type of cigarettes which do not bear the Red Digital Tax Stamp in UAE will be banned local market. The Digital Tax Stamp in UAE or the DTS is a recently instituted tax managing scheme by. The FTA by which the tobacco manufacturers and stakeholders are to comply with definite. Improved standards while importing and selling tobacco in the UAE market. The DTS ensures especial pack marking and indoctrination with end-to-end traceability. As per this scheme all tobacco manufacturers should use particular high-security control stamps and codes on all packs.

Aims of the DTS Scheme.

  • It augments the FTA to control and gather taxes on all imported or locally manufactured tobacco products sold in the UAE market.
  • By enabling the germane authorities to examine and audit the supply chain. it can spot and control the illegal trade of tobacco products Designated Zone in the market.
  • The UAE government won’t allow any business to import cigarette products without a DTS from 1 May 2019 onwards.
  • All cigarette goods to be imported or produced or sold in the UAE market should have the Digital Tax Stamp in UAE on them with end-to-end traceability from one August 2019 onwards. But the products with a Stamp without end-to-end traceability may remain in the market if they are legal 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 explanation for the Duty-Free products
  • The Digital Stamp is compulsory for all -Free products in the UAE
  • All the interior country and inbound duty-free products should carry the Red Stamp
  • All UAE based or global cigarette producers who import their products into. the UAE for domestic sale or for duty outlets like airports and ports.
  • An officially licensed importer who will purchase cigarette products in bulk from an international or locally producer to sell or distribute in the UAE market or duty-free outlets.
  • Any Distributor or Supply Chain Agent or storehouse Keeper who receives the imported goods for sale in the UAE market or duty-free outlets.