FTA uncovers 2.8m unregistered tobacco products without DTS and 202,000 excise taxable beverages through 2,226 inspection visits during the second quarter of 2021 valued at 71.48-million in tax liabilities

Abu Dhabi, 13 July 2021:

As part of its plans to contribute effectively and continuously to enhancing control on markets, the Federal Tax Authority, FTA, has intensified its inspection campaigns in the local markets in collaboration with the Ministry of Economy (MoE), Federal Customs Authority and other competent authorities to ensure compliance with tax legislation and procedures, as well as protecting consumers from trafficked products that do not meet quality specifications approved within the UAE.

In a press release issued today, the FTA announced that its inspections teams conducted 2,226 field inspections visits in local markets during the second quarter of this year, through a total of 23 campaigns that were conducted throughout the seven emirates in collaboration with relevant government entities. During these visits, 655 tax violations valued at AED71.48million were detected.

The FTA Director-General, His Excellency Khalid Ali Al-Bustani, said that specialised teams, in cooperation with the concerned authorities, carry out inspection campaigns throughout the year to strengthen control procedures aimed at protecting consumers and combating tax evasion. During Ramadan, the Authority intensified its inspections campaigns in collaboration with the competent authorities to enhance its control in markets, as many violations were discovered and appropriate legal measures were taken.

H.E. Al-Bustani confirmed that protecting consumers and their rights, as well as preserving the country’s rights, are at the top of FTA priorities, adding that the Authority provides all means of support and assistance to help business sectors comply with tax procedures and systems through accessible mechanisms that ensure the efficient continuity of their business activities. His excellency also called on all taxable persons to adhere to tax legislation to avoid violations.

H.E. Al-Bustani added: “The FTA is keen to implement the best global practices regarding the application of tax legislation and procedures, which have clearly defined mutual obligations between the Authority and taxpayers, through accurate control mechanisms that provide the highest standards of governance and transparency using cutting-edge technologies and smart programs to enhance the effectiveness and efficiency of inspections.”

Sara Al Habshi, the FTA’s Director of Tax Compliance and Enforcement Department, pointed out that the field inspections conducted during the second quarter of 2021 detected 2.86 million unregistered tobacco products that didn’t bear the Digital Tax Stamp, DTS, in addition to 202,000 other Excise Goods, including carbonated beverages, energy drinks, and sweetened drinks.

Al Habshi stressed that all inspection campaigns carried out by the FTA are conducted using sophisticated, cutting-edge control mechanisms to prevent the sale, circulation, and stockpiling of products that have not fulfilled their Excise or Value Added Tax (VAT) obligations. One of these mechanisms is the placement of DTSs, which are registered in the FTA database on tobacco products. Each DTS contains data that can be read with a special device to make sure that all taxes due on the products have been paid.

About The Federal Tax Authority

The Federal Tax Authority was established by Federal Decree-Law No. (13) of 2016 to help diversify the national economy and increase non-oil revenues in the UAE through the management and collection of federal taxes based on international best practices and standards, as well as to provide all means of support to enable taxpayers to comply with the tax laws and procedures.

Since its inception in 2017, the FTA has been committed to cooperating with the competent authorities to establish a comprehensive and balanced system to make the UAE one of the first countries in the world to implement a fully electronic tax system that encourages voluntary compliance, with simple procedures based on the highest standards of transparency and accuracy – beginning from registration, to the submission of tax returns, to the payment of due taxes through the Authority’s website: www.tax.gov.ae.

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