Digital excise tax system launched in Russia

The Digital Excise Tax system has been operational in Russia since July 1, allowing for the administration of excise tax on tobacco. Codes for cigarettes, vapes, and other nicotine-containing products will be issued to manufacturers and importers only after the Honest Sign marking system has verified information from relevant departments. This mechanism will enable the abandonment of paper stamps and ensure control over the correctness of determining the tax base for excise duties on tobacco and nicotine-containing products. The transition to the new mechanism will simplify tax administration, customs regulation, and allow supervisory authorities to identify participants of turnover who evade excise taxes. The tax code equates digital marking to an "accounting and control special mark".