Scenarios when the stamps need to be returned
Following scenarios shall require when marks (Digital Tax Stamp) should be returned to the FTA:
- Where the person becomes aware that he no longer has the intention to use the marks for the purposes of affixing them to designated excise goods;
- Where a period of 12 months has passed since the person received the marks and those marks have not been affixed to designated excise goods; and
- Any other circumstances as specified by the FTA.
The FTA will interpret this provision broadly to mean any scenario in which the person knows they will no longer have the ability or intention to use the marks.
Such scenarios include, but are not limited to, the following:
- Ceasing of business;
- Ceasing of trade in a particular product line;
- Wastage during the production process e.g. when the marks are damaged during the process of applying them to products;
- Damage of marks outside the production process e.g. when marks are damaged as a result of water leakage, fire etc.
Scenarios where it is impractical to return
There are, however, within the above a number of scenarios were the FTA recognises it would be impractical to require the return of marks. Therefore, in such cases, the FTA will require sufficient evidence to prove the marks are no longer in the person’s possession.
The scenarios where the FTA recognises it would be impractical to return marks include where marks are:
- damaged and destroyed; or
The process of returning marks
Where a person has an obligation to return marks, the FTA requires that those marks should be physically returned to the authorised operator of the DTS scheme on the FTA’s behalf. Currently, the authorised supplier is De La Rue. De La Rue will therefore receive returned marks on behalf of the FTA for onward management.
Any person required to return marks should contact De La Rue for further details on the specific procedure for returning those marks.
For the avoidance of doubt, fees originally paid for the purchase of marks will not be refunded where there is a requirement for marks to be returned. Businesses are therefore encouraged to ensure that they are as accurate as possible around the expected volume of marks required when placing orders.
As part of the process of returning marks where required, any person obligated to return marks should also report the return of the marks via the official DTS system at the point the obligation to return the marks arises. This requirement applies in all cases where a person is required to return marks i.e. both where a change of intention with respect to the use of the marks arises, or where 12 months has passed and the marks have not been affixed during that time.
Currently, the manner in which returned marks should be reported to the FTA is by emailing [email protected] with details of the number of marks returned, the reason for the return, the manner in which marks were returned, the date of return and the date on which the obligation to return the marks arose.
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