UAE To Require Digital Tax Stamps for Vapor

Starting Jan. 1, shisha and vapor products will have to carry digital tax stamps (DTS) in the United Arab Emirates, reports the Khaleej Times, citing the Federal Tax Authority (FTA) said.

These products cannot be sold, transported, stored or possessed without the tax stamp.

According to the FTA, the DTS system will improve tax collection and enable stakeholders to analyze the supply chain to better control illicit tobacco products.

In addition, the DTS system allows for the implementation of compliance standards and facilitates inspection and control at customs outlets and local markets.

The digital stamps will be placed on the packages of tobacco products and registered in the FTA database. The DTS contains data that can be read with a special device to make sure all taxes due have been paid.

The tax stamp legislation had previously been scheduled to come into effect on June 1, 2020. However, authorities postponed the deadline to address challenges posed by the coronavirus pandemic.