The Federal Tax Authority (FTA) has uncovered 2.8 million unregistered tobacco items without Digital Tax Stamp (DTS) and 202,000 excise taxable beverages through 2,226 inspections during the 2^nd quarter of 2021 valued at AED 71.48 million in tax liabilities.

As part of its plans to contribute towards enhancing control on local markets, FTA has increased the intensity of its inspection campaigns in markets, in collaboration with the Federal Customs Authority, the Ministry of Economy (MoE), and other relevant authorities and institutions to ensure compliance with all the applicable tax rules and processes, as well as protecting the citizens of UAE from all trafficked items that doesn’t meet the quality standards and specifications approved within the United Arab Emirates (UAE).

The FTA recently said that its teams conducted more than 2,000 inspections (2,226 to be exact) in local markets during the 2^nd quarter of the current year. In total, the authority conducted 23 campaigns throughout all the emirates of UAE in cooperation with relevant authorities. During the visits conducted by the FTA’s teams, tax violations amounting to AED 71.48 million were found.

The Director-General of FTA, His Excellency Khalid Ali Al-Bustani, said that specialized teams, in collaboration with the relevant government authorities, carried out inspection visits with the main purpose to strengthen controls aimed at countering tax evasion and protecting the rights of the consumers. During the month of Ramadan, the FTA intensified its campaigns in cooperation with other relevant authorities to increase the level of its control in markets, as several violations of laws and regulations were undiscovered and appropriate legal actions were taken.

H.E. Al-Bustani confirmed that preserving the country’s rights as well as protecting the rights of the consumers, are one of the top-most priorities of the FTA. He added that the FTA provides all types of support to help businesses comply with tax laws and procedures through mechanisms that ensure the efficient continuity of their business operation. He also said that all the taxable persons should comply with all the applicable tax laws and procedures to avoid violations.

H.E. Al-Bustani also said that the authority is keen towards implementing the best practices regarding the application of tax rules and regulations.

Sara Al Habshi, the Director of Tax Compliance and Enforcement Department at FTA, highlighted that field visits conducted during the 2^nd quarter of 2021 found 2.86 million tobacco that were not registered and therefore didn’t bear the DTS, in addition to 202,000 other Excise Goods that included carbonated beverages, sweetened drinks, and energy drinks.

Al Habshi emphasized that all the inspection visits carried out by the authority are conducted using control mechanisms that help the FTA’s teams in preventing the sale and stockpiling of all the items that have not yet fulfilled their Value Added Tax (VAT) or Excise obligations. One such mechanism includes the placement of Digital Tax Stamps on registered tobacco products. Each DTS contains data that can be read using a special device to ensure that all the taxes and duties due on the product have been paid.