“The Federal Tax Authority, FTA, has confirmed that as of 1st January 2021, it will not be permitted to sell (supply), transport, store or possess any type of water pipe tobacco or electrically heated cigarettes in the UAE unless they bear the Digital Tax Stamp (DTS). The DTS system helps the FTA improve its ability to collect excise tax charged on water pipe tobacco or electrically heated cigarettes in the UAE after being imported or manufactured locally, as well as strengthening control over these products and enabling stakeholders to analyse the supply chain to better control illicit tobacco product. In addition, the DTS system allows for the implementation of compliance standards by enabling the monitoring and tracking of compliant tobacco products. Accordingly, the FTA reaffirms the need for all companies, manufacturers and suppliers of tobacco and tobacco products to comply with the system and to cooperate with the Authority to implement it accurately and effectively. The FTA explained that the DTS system facilitates inspection and control at customs outlets and local markets, in order to ban the sale of contraband products and combat commercial fraud.”
ARTICLE LINK: Water pipe tobacco products, e-cigarettes bearing Digital Tax Stamp