Are you looking to set up a vape shop in Abu Dhabi? With the growing popularity of vaping, opening a vape shop can be a lucrative business opportunity. But it’s important to understand the regulations and procedures involved in setting up a vape shop in Abu Dhabi. In this guide, we will walk you through the steps to open your own vape shops in Abu Dhabi.
Legal requirements and licensing:
Trade license: To operate a vape shop, obtaining a trade license is mandatory. This license permits the sale of e-cigarettes and related products. The cost of acquiring a trade license can range from AED 10,000 to AED 50,000, depending on the specific type and scope of the license.
Emirates authority for standardization and metrology (ESMA) approval: All vaping products must comply with ESMA standards. This ensures that the products meet safety and quality requirements set by the UAE government. Obtaining ESMA approval is a prerequisite for legally selling vaping products in the country.
Taxation and compliance:
Excise tax and VAT: E-cigarettes are classified as excise goods in the UAE and are subject to a 100% excise tax. Additionally, a 5% Value Added Tax (VAT) is applied to the retail price of these products. It’s important to factor these taxes into your pricing strategy to maintain profitability.
Digital tax stamps (DTS): All e-cigarette products sold in the UAE must bear Digital tax stamps. These stamps indicate compliance with tax regulations and are obtained through registration with the Federal Tax Authority (FTA). Ensuring your products have the appropriate DTS is key to avoid legal complications.
Location and premises:
Selecting an appropriate location is vital for the success of your vape shop. Ensure the premises comply with local zoning laws and are situated in areas where the sale of tobacco products is permitted. It’s advisable to consult with local authorities to confirm that your chosen location meets all regulatory requirements.
Inventory and suppliers:
Establish relationships with reputable suppliers who provide high-quality, ESMA-approved products. Offering a diverse range of products can attract a broader customer base. Regularly updating your inventory to include the latest products can also improve customer satisfaction and loyalty.
Marketing and advertising:
Marketing vaping products in the UAE is subject to strict regulations. Ensure that all advertising materials comply with local laws, avoiding promotions that may appeal to minors or non-smokers. Utilizing in-store promotions and building a strong online presence within the bounds of the law can effectively reach your target audience.