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Registration of Digital Tax Stamp for Tobacco Products

A digital stamp for tobacco products establishes an accurate and effective control system allowing the authority to efficiently collect taxes, and ensuring transparency to combat tax evasion. The authority has outlined the procedures to be followed to apply the stamps on tobacco products. The stamps must be applied on specific products and in exact positions determined by the authority. for more info, you can contact vat consultant in Dubai, UAE.

The procedure for registering the stamps requires to issue an order to purchase the stamps according to the procedures determined by the relevant authority.

This system requires tobacco manufacturers, importers and sellers to comply with enhanced standards for the importing and trading of tobacco in the UAE.

  • To enhance the ability to control and collect taxes on tobacco products sold in the UAE.
  • To give the relevant authorities the ability to analyses and audit the supply chain in order to better identify the trade of illicit tobacco products.
  • To meet the compliance standards laid down by tax regulatory by the enabling of tracking and traceability of compliant tobacco products.

Things You Should Remember About VAT Registration in UAE

Stakeholders that require Registration of Digital Stamp for Tobacco Products

Tobacco Manufacturers:

Any UAE-based or international cigarette manufacturer that sells its products by importation into the UAE for either domestic sales or sales through UAE duty-free outlets (airports and ports).

 Tobacco Importers

Any officially licensed importer who purchases cigarettes in bulk from domestic or international manufacturers and undertakes to sell and distribute within the UAE mainland or UAE duty-free markets.

 Tobacco Distributors

Any official distributor that will be the receiver of formally imported goods for sales in the domestic market or sales through UAE duty-free outlets (airports and ports).

How to apply for VAT Registration in UAE

Procedure for registration of digital stamp for tobacco products

The importer/manufacturers and the sellers have to issue an order to the relevant tax authority for the purchase of a digital stamp. The digital stamps or seals will be printed on the packages of tobacco products will be registered on the tax authority’s database to ensure that taxes on these products are being paid or not.

The required person has to mention some key points (not limited to) for applying digital stamp duty:

  • Nature of goods
  • Place of goods produced
  • Number of goods to be stamped

Registration by importers and manufacturers most commonly include the following information.

  • Organization details
  • Site details
  • Users details
  • Products details
  • Suppliers details

Manufacturers should also include the details of the machine used for production.

VAT Registration UAE Fees

Registering movement tobacco products

All local producers’ importers and sellers must register and declare the tax goods they sell, buy, store process or transfer.

Any person dealing with excise goods is required to document the movement of goods.

Understanding VAT Penalties in UAE: Risks and Consequences of Non-compliance

Procedure to place a digital stamp on tobacco products

The authority can determine the shape of the stamp and the conditions for applying it, this also includes conditions where no stamp is required.

Authorities also mention the method of placing the stamp and its location on the excise good. The decision specifies that Stamps are to be placed on the excise goods (after packing) at the facility where they are produced, if they are made in the UAE, or at a location outside UAE if they are imported.

Farahat and Co. are experts in Vat registration in Dubai, UAE tax law and digital stamp duty. Our main philosophy is based on the energetic representation of our clients’ interests. The objective of our consultation is to achieve the best results on behalf of our clients. For further consultation contact us

Ervee is a CPA with international experience in Tax and Accounting. He has over 12 years of experience in accounting and bookkeeping and over a year in VAT implementation, registration, and accounting in UAE. He regularly drives out inefficiencies in company operations and loves the challenge of helping clients find additional ways for an easier and improved compliance and verification of transactions.