FTA director general, Khalid Ali Al Bustani, announced on Augast 6, 2019 that from November 1, 2019, there is new VAT tax rule on two products.
Federal tax authority is implementing the second phase of the “Marking Tobacco and Tobacco Product Scheme” and eventually this will cove the waterpipe tobacco and electric cigarettes. Digital Tax Stamp will be made available to all producer and importer of such goods. Federal Tax authority also mentioned that it held the another awareness workshop in Dubai to give introduction of this scheme’s and its objectives.
FTA also mentioned that the sale or the possession of any cigarette pack not having the Digital Tax Stamps was prohibited across local market as of the Augast 1, 2019.
November 1, 2019, the Digital Tax Stamps will be made available for any business who is dealing in such products. From March 1, 2020, it will be prohibited to import into the UAE any of the Excise Goods outlined in FTA Decision No. (2) of 2019 on Marking Tobacco and Tobacco Products, if they do not bear the stamps. Finally starting on June 1, 2020, it will no longer be permissible to supply, transfer, store, or possess said Excise Goods in the UAE unless they have the stamps.
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