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the digital tax stamp scheme in dubai
Post By: admin August 19 2019

The Digital Tax Stamp Scheme

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.

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 CDA Accounting and Book Keeping Services 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.