UAE Federal Tax Authority’s inspections ensure tax compliance

Dubai: Federal Tax Authority (FTA) ramped up inspections across the UAE in 2020 to ensure tax compliance.

The Authority said these campaigns were carried out within the framework of the Authority’s extensive efforts to contribute towards strengthening market performance and ensuring compliance with all tax legislation and procedures to protect legitimate trade and prevent the sale of contraband within the UAE and tax evasion.

The FTA pointed out that the application of Excise Tax laws achieved remarkable success since their implementation, reflecting positive results primarily in the accelerated pace of building a safe and healthy society by reducing the consumption of harmful goods that negatively affect the health and wellbeing of the community.

The FTA noted that the total value of the liabilities caught during the inspection visits amounted to Dh191.83 million, highlighting that in the category of goods subject to Excise Tax, 9.4 million units of cigarette packs and 14,000 kilograms of shisha tobacco products were uncovered as goods not bearing digital tax stamps and no tax has been declared or paid on them.

Other Excise Goods caught in violation of Excise Tax laws included a total of more than 803,000 items ranging from carbonated beverages, energy drinks, sweetened drinks and electronic smoking devices (along with their tools and the liquids used in them).

“The Federal Tax Authority adheres to international best practices to ensure that all tax legislations and procedures are implemented thoroughly. All mutual obligations between the Authority and Taxable Persons have been clearly outlined in these regulations, which seek, first and fore most, to protect consumers and tighten controls on UAE markets to ensure governance and transparency,” said FTA Director-General Khalid Ali Al Bustani.

The FTA’s inspections rely on various field and electronic procedures that prevent the sale, circulation, and stockpiling of products that have not fulfilled their Excise or Value Added Tax (VAT) obligations.