The Federal Tax Authority has started the executive procedures of the Council of Ministers' Decision on “Selective Commodities, Tax Rates and How to Calculate the Selective Price” issued during August, whereby the scope of the Commodities applicable to the Selective Tax shall be extended to include electronic smoking devices and liquids. , And sweetened beverages, which will take effect in early January 2020, in addition to tobacco and its products, energy drinks, and soft drinks, which began to apply the selective tax from the beginning of October 2017.

The new resolution
The new decision comes as part of the government's continuous efforts to promote healthy lifestyles in the UAE society to reduce diseases related to the consumption of goods harmful to human health within the framework of the UAE Vision 2021, which aims to make the UAE among the best countries in the world.
As a first step, the Commission called on all producers, importers and stockpeople of sugar sweetened with added sugar to register with the Authority for selective tax purposes and to abide by the decision aimed at the public interest, pointing out that the selective tax is an indirect tax imposed on certain harmful goods to reduce its consumption.
She explained that within the framework of the basic procedures for the implementation of the Cabinet's decision to expand the scope of selective goods, the Federal Tax Authority has modernized and developed the electronic registration system, which is characterized by ease and speed of procedures, to add goods covered by the new decision of the Council of Ministers in this regard, and to facilitate the business sectors concerned to complete the registration process In the selective tax system without hindrance.
In addition to the updates made to the registration systems, the TRA has implemented a new mechanism for registering selective goods as of August 18th, and called on all concerned business sectors including producers, importers and stockpiles of selective commodities to register all these commodities that are handled through The new system.

The first stage
In the first phase, the Authority called on all concerned with sweetened beverages to be registered in the new system launched by the Authority, after they are registered in the system as subject to selective tax, where it will be followed by the announcement of the second phase, which includes the registration of those concerned with electronic devices and smoking devices and liquids used in them.
According to the decision, the Federal Tax Authority determines the procedures necessary to prove the classification of a product to ensure that it is a selective commodity.

Comprehensive plan
The Director General of the Federal Tax Authority, Khalid Ali Bustani, said that «the Authority has developed a comprehensive multi-track plan with the aim of ensuring the accurate and smooth implementation of the decision of the Council of Ministers, in addition to the updates that have been made to the registration systems, and the application of the new mechanism for the registration of selective goods, has prepared a set of Manuals and guidelines explaining the mechanisms and criteria for applying the selective tax on electronic smoking devices and instruments, the liquids used in those devices, and drinks sweetened with added sugar, as well as in simplified ways the steps necessary to complete the registration process for both subjects. In addition, the TRA started a comprehensive awareness campaign with workshops and introductory seminars for the concerned parties on the executive procedures in light of the new decision throughout the country.
According to the resolution, sweetened beverage means any product added to a source of sugar or other sweeteners, which is produced to be ready for drinking for the purpose of drinking as a drink, concentrates, powders, gel, extracts or any form that can be converted into a sweetened beverage. Type of sugar specified in accordance with Standard No. (148) according to the GCC Standardization Organization (GSO) under the title "Sugar", and any subsequent and related standards, while sweeteners include any type of sweeteners specified in accordance with Standard No. (995) according to Standardization for GCC countries Online under the title »sweeteners permitted for use in food«, and any subsequent standard specifications and relevant.

Sweetened drinks
The Commission confirmed that the definition of sweetened beverages contained in the resolution excludes a range of goods, including at least 75% of the ready-to-drink content of the beverage and at least 75% of the substitutes of the beverage. Drinks ready for drinking, infant formula or infant foods. Beverages intended for special dietary uses are excluded in accordance with GSO Standard No. 654, “General Requirements for Bottled Foods for Special Dietary Uses” and any subsequent and relevant standards , The drink Custom medical uses in accordance with standard Specification No. (1366) according to the Standardization Organization of the Gulf Cooperation Council under the title »General requirements for the handling of used food for special medical purposes", and any subsequent standard specifications and relevant.