Federal Tax Authority Increases Inspection Efforts by 80.71% in 2023

UAE, 6 May, 2024 :  The Federal Tax Authority (FTA) of the UAE has significantly intensified its oversight efforts, collaborating with various entities to safeguard consumer rights, combat tax evasion, and bolster tax compliance.

In 2023, the FTA conducted 39,470 inspection visits across UAE markets, marking an 80.71% increase from the previous year. This surge also saw an 86.73% growth in the number of campaigns conducted, compared to 2022.

The intensified campaigns aim to ensure adherence to tax laws, legislation, and procedures, while also combating commercial fraud and preventing the sale of substandard or counterfeit products.

Notably, within the Excise Goods category, the FTA seized 21.29 million units of non-compliant tobacco products lacking Digital Tax Stamps. Additionally, 2.45 million non-compliant units of other Excise Goods, such as soft drinks and energy drinks, were confiscated.

H.E. Khalid Ali Al Bustani, Director General of the FTA, emphasized the Authority's commitment to enhancing tax compliance and protecting consumers. He highlighted the stringent inspection criteria aligned with international best practices to ensure effective implementation of tax laws and regulations.

Al Bustani also underscored the reliance on various field and electronic supervisory mechanisms to prevent the sale, trade, or storage of non-compliant products.

Strategic partnerships with government and private sectors have played a vital role in the successful implementation of the tax system, facilitating tax awareness initiatives and joint inspection campaigns.

In 2023, compliant establishments verified by market inspections increased by 79.41%, while non-compliant establishments rose by 70.91%. The issuance of registration notices to non-compliant establishments also saw a significant increase.

Through these concerted efforts, the FTA aims to tighten market surveillance and enhance tax compliance, ensuring the protection of consumer rights and the integrity of the tax system.

Source : www.tax.gov.ae