UAE Excise Tax FTA Intensifies Inspection Visits by 104%

FTA’s objectives in intensifying inspections

The Federal Tax Authority (FTA) expanded its efforts, in collaboration with various government departments, with an aim to:

01

Protect consumers from non-compliant products

02

Combat tax evasion

03

Ensure compliance with tax legislations and procedures.

Results of FTA’s intensified inspections

• Seized 5.5 million packages of tobacco products not bearing ‘Digital Tax Stamps’*

• Assessed Dhs 130.4 million tax liabilities on 1.07 million packages of selected goods, such as soft drinks, sweetened beverages, and energy drinks**

• 1,213 tax law violations issued to facilities.

• 404 notices of non-registration were sent to violating entities.

For your information

*Digital Tax Stamps (DTS) is a control scheme which delivers unique pack marking encoding to allow product traceability from the point of manufacturing through to the final Emirate of distribution and to support reduction of illicit tobacco trading.

**In the UAE, Excise Tax is applied on certain goods with the intent to reduce consumption of these commodities while also raising revenues for the government.

Key Takeaways

As the FTA has recently enforced stricter compliance with tax legislations and procedures, businesses must respond accordingly to ensure they are compliant.

• Crowe can assist in preparing for an FTA inspection by conducting mock audits

• Crowe can assess tax compliance by conducting comprehensive tax health check and provide recommendations to improve tax processes

• Crowe Assist in the preparation of tax returns to ensure compliant reporting to the FTA