Digital Tax Stamp Scheme in UAE 🥇

Digital Tax Stamp Scheme in UAE

The Federal Tax Authority (FTA) introduced the Digital Tax Stamp (DTS) Scheme to regulate tobacco products. From 1 August 2019, selling or possessing cigarettes without a Red Digital Tax Stamp became illegal in the UAE market. The scheme aims to ensure proper tax collection and track tobacco products across the supply chain.

What Is the Digital Tax Stamp Scheme?

DTS is a tax control system that requires cigarette manufacturers and importers to use unique high-security stamps and codes on every pack. These stamps allow end-to-end traceability, making it easier for authorities to monitor production and distribution.

Aims of DTS

The main goals of DTS are:

  • Collect accurate excise tax on tobacco products.
  • Monitor supply chain and prevent illegal tobacco trade.
  • Comply with WHO’s Framework Convention on Tobacco Control by tracking legitimate products.

Milestones of DTS

The implementation of DTS followed clear phases:

  • 1 January 2019: Importers and producers allowed to order stamps.
  • 1 May 2019: No imports allowed without a digital tax stamp.
  • 1 August 2019: All tobacco sold in UAE must carry stamps with full traceability.

Products with stamps issued before August but without traceability were allowed if imported legally during the transition period.

FTA Clarification for Duty-Free Products

FTA clarified that:

  • Digital Tax Stamp is mandatory for all duty-free products.
  • Inbound duty-free products must carry Red Stamps.
  • Outbound duty-free products must carry Green Stamps.

Who Must Register for DTS

DTS registration applies to:

  • UAE-based or international cigarette producers importing for UAE or duty-free outlets.
  • Licensed importers purchasing cigarette products for sale or distribution.
  • Distributors, supply chain agents, and warehouse keepers storing or selling tobacco products.

How to Order Digital Tax Stamps

Follow these steps to order stamps:

Select “Manage Orders” and enter order details for UAE or duty-free market.

Download the form from tax.gov.ae/digital-tax-stamp.

Submit it to [email protected] to access DLR Certify System.

Log in with your username and password.

What Can Help – Mubarak Al Ketbi (MAK) Auditing

Mubarak Al Ketbi (MAK) Auditing assists businesses with excise tax compliance, DTS registration, and VAT consultancy. Our team helps you avoid penalties, streamline registration, and stay aligned with FTA rules. After all, prevention is better than cure.

  • For more information visit our office: Saraya Avenue Building – Office M-06, Block/A, Al Garhoud – Dubai – United Arab Emirates
  • Or contact/WhatsApp us: +971 50 276 2132

FAQs Digital Tax Stamp Scheme in UAE 🥇

Why is internal auditing important for UAE businesses?
Internal auditing helps keep financial data correct and ensures compliance with UAE rules.
What are the main types of internal audits?
Performance, regulatory, operational, environmental, and IT audits are key types.
How do auditors help in fraud detection?
They find fraud risks, run audits, and guide management on fixing weaknesses.
Can internal auditors improve company reputation?
Yes, they make sure the company follows laws and works ethically.
What is the first step in internal audit?
The first step is preparation where auditors set audit plans and goals.

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