JobXDubai

In 2023, the United Arab Emirates (UAE) witnessed a significant surge in tax inspections, with the Federal Tax Authority (FTA) conducting over 39,000 visits across the country. This marks an 80.71% increase from 2022, demonstrating the UAE’s commitment to combating tax evasion and protecting consumers.

The FTA’s intensified supervisory efforts aim to ensure tax compliance, monitor taxpayer adherence to tax legislation, and prevent commercial fraud. These efforts have resulted in the seizure of 21.29 million units of non-compliant tobacco products and 2.45 million units of other excise goods.

Khalid Ali Al Bustani, Director General of the FTA, emphasized the importance of tax compliance, stating that the Authority is working to enhance tax awareness and encourages taxpayers to self-comply with tax laws and regulations.

The FTA’s inspection operations rely on various field and electronic supervisory mechanisms to prevent the sale, trade, or storage of non-compliant products. The ‘Marking Tobacco and Tobacco Products Scheme’ has been instrumental in this effort, using Digital Tax Stamps to verify tax compliance.

The FTA has established strategic partnerships with government and private sector entities, contributing to the successful implementation of the tax system. These partnerships have raised tax awareness among business sectors and consumers, resulting in increased compliance in the markets.

The 2023 inspection campaigns revealed a 79.41% increase in compliant establishments, with 4,390 non-compliant establishments identified. The FTA issued 1,150 registration notices to non-registered and non-compliant establishments, marking a 72.31% increase from 2022.

The UAE’s intensified efforts to combat tax evasion and protect consumers demonstrate its commitment to upholding transparency and governance standards.