Cigar Brandsync Registration in the UAE via FTA

The UAE has strict excise tax regulations for tobacco products, including cigarettes. Companies importing, producing, or selling cigars must comply with the Federal Tax Authority (FTA) registration requirements, excise tax obligations, and Digital Tax Stamp (DTS) rules. This blog post outlines the key steps, requirements, and compliance guidance for Brandsync registration of cigar products in the UAE.

Registration Requirements

Any person or entity wishing to import, produce, or sell cigarettes and cigars in the UAE must register with the Federal Tax Authority (FTA) as a taxable person for excise tax purposes.

This includes:

• Importers of excise goods.
• Producers of excise goods.
• Persons releasing goods from an excise tax designated zone.

Upon registration, the taxable person receives a Tax Registration Number (TRN) from the FTA. This TRN is mandatory for all excise tax reporting and import procedures.

Excise Tax Rate

• The excise tax rate for tobacco products, including cigarettes and cigars, is 100% of the retail selling price.
• This rate has been effective since 1 October 2017 and applies to all importers, producers, and sellers.
• The high excise tax is aimed at controlling tobacco consumption while ensuring revenue collection for the UAE government.

Digital Tax Stamps (DTS) Requirements

Since 1 August 2019, all cigarette and cigar products imported into the UAE must have a Digital Tax Stamp (DTS). This system ensures:

• Traceability of products throughout the supply chain.
• Verification that excise tax has been paid.

Key points:

Each DTS carries a unique code for the product. Failure to comply with DTS requirements may result in penalties, confiscation, or prohibition from sale in the UAE. DTS codes are used in both Brandsync registration and FTA customs filings.

What is the Brandsync Registration Process?

Brandsync is the UAE platform for registering excise goods. Steps include:

1. Register your product in Brandsync to receive a unique product code.
2. If the product is already registered, locate the code in the Emaratax goods list.
3. Use the Brandsync code when declaring excise tax in FTA and customs.

After registration, the product code will be linked to your FTA TRN for all excise tax compliance activities.

What is the Import Process for Cigars?

When importing cigars into the UAE, follow these steps:

1. Ensure registration with the FTA as a taxable person.
2. Obtain the necessary Digital Tax Stamps for the products.
3. Submit an import declaration to customs, including excise tax details.
4. Pay the applicable excise tax upon importation.

Following these steps ensures compliance and smooth clearance of products at UAE ports.

Compliance and Reporting

Taxable persons must maintain accurate records for all transactions involving cigars, including:

• Invoices and receipts for all purchases and sales.
• Records of excise tax paid on imported goods.
• Documentation related to Digital Tax Stamps.

How Bizzmosis Can Assist

Bizzmosis provides end-to-end support for cigar registration and excise tax compliance in the UAE, including:

• Regulatory guidance: Advising on FTA registration and DTS requirements.
• Brandsync registration: Assisting in product registration and obtaining the correct product code.
• Customs and import support: Ensuring correct excise tax filing and smooth customs clearance.