The Digital Excise tax system has been operating in Russia since July 1, it will allow the administration of the excise tax on tobacco. Now the codes will be issued to market participants only after verification by the Honest Sign labeling system of information from relevant departments, the press service of the Center for the Development of Advanced Technologies (CRPT, the operator of the Honest Sign labeling) reported.
"Since July 1, the Digital Excise Tax begins its work - this is a system based on the Honest Sign for the administration of the excise tax on tobacco. Now codes for cigarettes, vapes and other nicotine-containing products will be issued to manufacturers and importers only after verification by the labeling system of information from the Federal Tax Service and the Federal Customs Service on the availability of collateral (bank guarantee, cash collateral, etc.). Such a mechanism will subsequently allow them to abandon the use of paper stamps," the message says.
It is noted that the innovation will ensure control over the correctness of determining the tax base for excise taxes on tobacco and nicotine-containing products. For example, if a certain taxpayer finds the size of the tax base to be less than the volume of products sold according to the labeling system, then the base will be determined based on the system.
"We are in constant dialogue with the participants of the turnover. The transition to the new mechanism will not entail any difficulties. The innovations will significantly simplify tax administration, customs regulation, and also allow supervisory authorities to identify participants in the turnover who evade paying excise taxes," said Jan Vitrov, head of the office of the chief designer of the CRPT.
According to Yevgeny Fedotov, head of the Fedotov Group tobacco consulting agency, quoted by the press service, market participants are in close dialogue with the CRPT, receiving consultations on clarifying new requirements. "Of course, any change is exciting, but in our opinion, this measure will have a positive impact on the tobacco industry in the future, significantly reducing the administrative burden on business. This is especially true for the issues of sending marking codes abroad, accounting for them and returning them," Fedotov added.
On June 1, a law came into force that established requirements for the administration of excise duty according to the state marking system "Honest Mark". This is the first stage of abandoning paper excise stamps for tobacco products. For these purposes, the Tax Code equates digital labeling to a "special accounting and control stamp".
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