Abu Dhabi- April 27, 2021:

The Federal Tax Authority (FTA) has conducted more than 2,707 field inspection visits through 35 inspection campaigns across UAE markets in the first quarter of 2021 (Q1-21). This is as part of its ongoing efforts to protect consumer rights and increase the level of tax compliance.

FTA revealed that 256 VAT violations were detected and 248 violations with a total value of AED74 million during Q1.

FTA Director-General, Khalid Ali Al Bustani, confirmed that the sophisticated, cutting-edge tools adopted by the authority during inspections enable teams to accurately carry out their tasks through the latest field electronic mechanisms which correspond to best practices. This contributes to tightening controls on UAE markets to prevent the sale, circulation, and stockpiling of products that have not fulfilled their Excise or VAT obligations.

One of these tools is the mandatory marking of tobacco and tobacco related products which came into effect on 1st January, 2019. It specified the requirement to place Digital Tax Stamp (DTS) on cigarette packs and tobacco products, including water-pipe tobacco and electrically heated cigarettes, after registering them in the FTA database. Each DTS contains data that can be read with a special device to ensure all taxes due on the products have been paid.

Al Bustani added, “The tax compliance rates that have been observed in the outcomes of the inspection campaigns carried out in the first quarter of 2021 highlight the success of the authority’s oversight efforts carried out in cooperation with the competent entities.”

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