Federal Tax Authority Records 80.71% Increase in Inspection Visits in 2023

The Federal Tax Authority (FTA) has intensified its supervisory efforts, in collaboration with various relevant entities, in a bid to protect consumer rights, combat tax evasion, and enhance tax compliance.

In 2023, the Authority carried out 39,470 inspection visits through 211 campaigns in local markets across all emirates of the UAE, marking an annual increase of 80.71 percent in the number of visits, as well as an 86.73 percent growth in the number of campaigns conducted, compared to 2022, which saw the FTA carry out 21,840 field visits through 113 inspection campaigns.

In a press statement issued today, the Federal Tax Authority asserted that these campaigns form part of its plans to enhance market control by intensifying inspection visits to markets across the country, in order to ensure compliance with tax laws, legislation, and procedures, in addition to combating commercial fraud and preventing the sale of sub-standard or counterfeit products that negatively affect quality of life.

The Authority explained that inspection efforts within the Excise Goods category last year resulted in the seizure of 21.29 million units of non-compliant tobacco products that were not marked with the Digital Tax Stamps. Meanwhile, 2.45 million non-compliant units of other Excise Goods, including soft drinks, energy drinks, and sweetened beverages, were also seized.

Khalid Ali Al Bustani, Director General of the Federal Tax Authority (FTA), emphasizes the FTA's efforts to enhance tax compliance, combat tax evasion, and protect consumers. The Authority employs strict inspection criteria aligned with international best practices to ensure effective tax law implementation. Various supervisory mechanisms, including the 'Marking Tobacco and Tobacco Products Scheme,' prevent the sale of non-compliant products. Strategic partnerships with government and private entities have facilitated successful tax system implementation, fostering tax awareness through workshops, seminars, and joint inspection campaigns across the UAE.

The Federal Tax Authority explained that the market inspection campaigns revealed an increase in the number of compliant establishments verified in 2023 to 32,710, up from 18,230 in 2022, which marks an increase of 79.41 percent. Moreover, the number of registered establishments found to be non-compliant with tax laws increased to 4,390, compared to 2,570 in 2022, marking an increase of 70.91 percent. A total of 1,150 registration notices were issued to non-registered and non-compliant establishments, up from 668 in 2022, representing an increase of 72.31percent.

News Source: Emirates News Agency