The Federal Tax Authority confirmed that the decision to postpone the final step of the second stage of the system of distinctive signs on tobacco and its products to prevent the supply, transport, storage and possession of all types of hookah tobacco (electronically prepared) and cigarette coils that are electrically heated that do not have digital tax stamps within the country as of January 1, 2021. It affects the first and second steps of this phase that have already been applied, and will not affect the proportions of selective tax, stressing that these specific selective goods imported must have valid digital tax stamps.
She explained that the decision to postpone the final step of the second phase of the tobacco labeling system and its products came in support of actions affected by precautionary measures to reduce the spread of the Corona virus emerging (Covid-19), noting that in light of these precautionary measures that included the temporary closure of cafes and restaurants, and preventing them Shisha hookah, some producers, distributors, importers and warehouses of shisha hookah and electrically heated cigarette coils were unable to adhere to the previously established timetables, and were unable to use or sell stock of goods without distinctive signs before June 1, 2020, so the authority decided to postpone the application of the move Final from the second stage to the first of January 2021.
This came in a clarification about the criteria for applying the decision to "postpone the implementation of the final step of the second stage of the system of labeling tobacco and tobacco products" within the framework of "general clarifications" submitted through the website of the Federal Tax Authority, which aims to inform tax subjects about the tax aspects that need a detailed explanation To simplify and enable them to apply accurately and efficiently.
The authority indicated that, according to Cabinet Resolution No. (42) for the year 2018 regarding the establishment of distinctive signs on tobacco and its products, and the Federal Tax Authority Resolution No. (2) for the year 2019 in this regard, the authority began implementing the first step of the second stage of the system as of November 1, 2019 , By enabling importers and manufacturers residing in the country to request digital tax stamps to install on hookah tobacco packages and electronically heated cigarette coils, and as of March 1, 2020, importation of hookah tobacco or electronically heated cigarette coils without digital tax stamps began to be prohibited.
The commission confirmed that these two steps were actually applied and their application remains valid and is not affected by the decision to postpone the final step of the second stage, noting that the customs departments will conduct the usual checks on these products to ensure compliance with these rules on an ongoing basis, and the decision will not affect the prevention of the import of specific selective goods that No digital tax stamps are issued to the country.
In its clarification, the commission pointed out that the decision to postpone the final step of the second stage of the distinctive signs system for tobacco and its products provides an opportunity for businesses that supply, transport, store, or possess hookah tobacco or electrically heated cigarette coils to carry out the use of these unmarked goods. Distinguished, in recognition of the current situation, which witnessed a temporary closure of many of the works, and its inability to sell their products before the first of June 2020 in the previously planned quantities, explaining that the business during the seven months that were extended would either have to use the stock of goods in their possession that do not bear distinctive signs , Or make alternative arrangements for use as export outside the country, for example.
It stated that by January 1, 2021 all hookah tobacco products or electrically heated cigarette coils kept in free circulation in the country must be equipped with valid digital tax stamps, and it will be prohibited to supply, transport, store, or possess these goods without the distinctive signs.