Electronic Cigarettes & Accessories Trading in the UAE
What are Electronic Cigarettes?
Electronic Cigarettes or E-cigarettes are hand-held battery powered devices that simulate smoking, however instead of burning tobacco like a traditional cigarette, the user inhales an aerosol (known as vapor). The e-cigarette typically has a heating element that will “atomise” a liquid solution called e-liquid.
E-cigarettes are not new having been introduced to the global market in 2003, however have grown substantially since 2014. The usage of e-cigarettes is fast growing and could potentially replace the traditional method in coming years.
Can you sell Electronic Cigarettes in the UAE?
In the UAE this activity allows the company to resell electronic cigarettes which are electronic devices that work by heating a liquid called e-juice which generates vapor that is inhaled by the user, the e-juice may or not contain nicotine, e-cigarette is intended to simulate the experience of smoking cigarettes and narghiles / shisha and may help users to quit smoking.
What type of licence do I require to trade Electronic Cigarettes?
According to the DED, this is a standard trading (commercial) Licence and therefore requires to be an LLC but requires no external approvals to perform these activities. As with any Onshore Licences, the company will require a 51% partner that is of UAE nationality. This can be in the style of an individual or a corporate nominee. Please see the reasons PRO Partner Group recommend choosing a Corporate Nominee local partner in the following link/:
Are there any ‘Sin Taxes’ on Electronic Cigarettes?
In a move to encourage healthy living, the UAE government has already introduced ‘sin tax’ on certain products including tobacco, fizzy drinks and energy drinks. However, as of January 2020, new ‘sin taxes’ will be implemented, a 50% tax on non-fizzy beverages high in sugar and 100% tax on vaping devices, vaping liquid and e-cigarettes.
How can PRO Partner Group Assist?
For further information on setting up a company in UAE or obtaining special approvals or any other related government liaison matter in the UAE click our contact us form below or call us on +971 (0)4 456 1761 in Dubai or +971 (0) 2 448 5120 in Abu Dhabi.
To find out what 2020 #sintax updates will be implemented in the #UAE visit https://t.co/GlIwtfKV0M— PRO Partner Group (@PROPartnerGroup) January 29, 2020