The inspections by the UAE federal tax authority guarantee compliance with tax laws

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The Federal Tax Authority (FTA) stepped up inspections in the United Arab Emirates in 2020 to ensure tax compliance.
Photo credit: Pixabay

Dubai: The Federal Tax Authority (FTA) stepped up inspections in the United Arab Emirates in 2020 to ensure tax compliance.

The agency said these campaigns were conducted as part of the agency’s extensive efforts to help strengthen market performance and comply with all tax laws and procedures to protect legitimate trade and prevent the sale of contraband in the UAE and tax evasion.

The Free Trade Agreement indicated that the application of excise tax laws has had remarkable successes since its implementation. Above all, this reflects positive results in the accelerated construction of a safe and healthy society by reducing the consumption of harmful goods that have a negative impact on the health and well-being of the population.

The Free Trade Agreement found that the total value of liabilities recorded during the inspection visits was Dh191.83 million, indicating that in the excise goods category, 9.4 million units of cigarette packs and 14,000 kg of hookah tobacco products were revealed as goods that do not have digital tax stamps and that have not been declared or paid any tax.

Other excise items that violated excise laws included more than 803,000 items in total, including carbonated beverages, energy drinks, sweetened beverages, and electronic smoking devices (along with their tools and the liquids used in them).

“The federal tax agency follows international best practices to ensure that all tax laws and procedures are properly implemented. All mutual obligations between the agency and taxpayers have been clearly outlined in these regulations, the primary goal of which is to protect consumers and tighten controls on the UAE’s markets to ensure governance and transparency, ”said Free Trade Agreement Director General Khalid Ali Al Bustani.

The FTA inspections rely on various field and electronic procedures that prevent the sale, circulation, and inventory of products that have failed to meet their excise or VAT obligations.