The Federal Tax Authority (FTA) of the United Arab Emirates is increasing inspections to fight tax fraud and protect customers from non-compliant goods.
In partnership with various government departments and ministries, up to 9,948 market visits were made during the first half of this year, which is a 104% increase from the 4,878 inspections made during the same period in 2021.
The most recent wave of inspections resulted in the confiscation of 5.5 million tobacco items without digital tax stamps as well as other products like as commodities, including soft drinks, sweetened beverages, and energy drinks, that did not adhere to tax requirements.
During these field inspections, products were confiscated for a total of AED 130.4 million in tax liabilities. Additionally, 404 warnings of non-registration and more than 1,212 fines were given to infringing entities.
If you are a business owner, it is important to take this news seriously and make sure that you are up-to-date on all tax laws and regulations. The FTA is not messing around, and they will not hesitate to levy heavy fines on businesses that are not in compliance.
The Federal Tax Authority intensifies its monitoring efforts to achieve compliance, and combat tax evasion by carrying out 2,202 inspection visits in local markets during the half year 2022.
In the efforts to protect consumers from non-compliant products, combat tax evasion, and ensure compliance with tax legislations and procedures, the Federal Tax Authority (FTA) has expanded its collaboration with various government departments, ministries and authorities. Therefore, we advise you to keep all your accounting and bookkeeping managed in line with the government requirements, in case of an inspection. As a tax-registered business, it is your obligation to follow the tax procedures.