This Public Clarification provides further guidance and clarification on the Federal Tax Authority’s (“FTA”) decision to postpone the final step of phase two of implementation of the Digital Tax Stamps (“DTS”) scheme for water pipe tobacco (known in Arabic as ‘Mu’assel’) and electronically heated cigarettes, which involves a ban on supplying, transferring, storing, and the possessing of the above mentioned Excise goods that do not carry DTS in the UAE until 1 January 2021 (“the Decision”).
For the purposes of this Public Clarification, water pipe tobacco and electronically heated cigarettes will also be referred to as “Designated Excise Goods”.
Article 2(c) of Cabinet Decision No. 42 of 2018 on Marking Tobacco and Tobacco Products along with Article 1(4) of Federal Tax Authority Decision No. 2 of 2019 on Implementing the Marking Tobacco and Tobacco Products Scheme prescribed that starting from 1 June 2020, it will not be permissible to supply, transfer, store or possess Designated Excise Goods...