FTA Conducts 103,680 Inspection Visits in Six
Months, Up 21%
AED 174 Million in Tax Liabilities and
Administrative Penalties Associated with 8.5 Million Non-Compliant Excise
Products Seized Across UAE Markets During First Half of 2026
Abu
Dhabi, 11August
2026: The
Federal Tax Authority (FTA) conducted approximately 103,680 field inspection
visits across local markets during the first six months of 2026, compared to
approximately 86,000 inspection visits during the first half of last year, representing
a 21% increase.
The
inspections were conducted as part of the Authority’s regulatory efforts, in
cooperation with the relevant entities, to enhance tax compliance, protect
consumer rights, and combat tax evasion.
The
Authority confirmed that, during the visits conducted across all emirates, its
teams seized and confiscated 8.45 million non-compliant excise products during the first half of this
year, compared to 17.6 million in the corresponding period in 2025.
The
seizures included 6.58 million non-compliant packages of tobacco and tobacco products,
compared to 15.8 million during the first half of last year. In addition, 1.87 million non-compliant packages of other
excise goods, including carbonated drinks, energy drinks, and sweetened
beverages, were seized, compared to 1.7 million packages seized during the
first six months of 2025.
The
Authority also issued 3,343 registration notices to persons who were not registered for
Value Added Tax, compared to 2,845 notices issued during the same period last year.
His
Excellency Abdulaziz Mohammed Al Mulla, Director General of the Federal Tax
Authority, said: “The Authority continues its efforts to enhance market
supervision and prevent smuggled products from entering the UAE’s markets.
These efforts aim to maintain high levels of compliance with tax legislation
and procedures, which clearly define the obligations of the Authority and
taxable persons. The Authority is also fully committed to protecting consumers,
combating commercial fraud, and preventing the trade of low-quality and
counterfeit products that negatively affect quality of life.”
He
added: “The close and ongoing cooperation between the Authority and its
strategic partners from the relevant federal and local entities is a key factor
in enhancing the efficiency, speed, and effectiveness of regulatory operations
across all areas of the UAE. This is achieved through the exchange of
information and the utilisation of the advanced capabilities available to the
relevant entities, including qualified personnel, logistical support services,
and monitoring and tracking systems that comply with international best
practices.”
Sarah
AlHabshi, Executive Director of the Tax Compliance Sector at the Federal Tax
Authority, said: “The indicators confirm that the Authority’s inspection
campaigns have delivered strong regulatory outcomes. The total value of tax
dues and fines associated with the non-compliant goods seized during inspection
visits conducted by the Authority’s inspection teams in the first six months of
this year exceeded AED 174 million.”
She added that the
inspections aim to ensure compliance with tax laws, particularly regarding the
issuance of tax invoices for sales, the display of tax-inclusive prices, and
the payment of tax due on products traded in the markets. The inspections also
aim to identify cases of tax evasion and other violations of the applicable tax
legislation.