New digital technologies improve tax compliance as FTA increases inspection visits
In efforts that support the protection of consumer rights, the Federal Tax Authority (FTA), in cooperation with the relevant authorities, stepped up its implementation of control plans, in 2024, the aim being to combat tax evasion and increase the level of tax compliance, across the UAE.
In 2024, the FTA carried out nighty three thousand field inspection visits in all seven emirates of the UAE. This represents a significant annual increase of 135.22%, compared to the forty thousand field visits in the previous year.
In today’s announcement, the FTA outlined that control campaigns, conducted in 2024, resulted in the seizure and confiscation of 11 million packages of non-conforming tobacco products that did not bear ‘digital tax stamps’. A further 3.9 million packages of other excise goods, including soft drinks, energy drinks and sweetened beverages were also seized, over the same period.
The total value of tax dues and associated fines seized during inspection visits in 2024 exceeded AED 348 million, indicating that effective market surveillance contributed to the detection of many establishments that were in violation of tax laws, with registration notices issued to offending establishments.
His Excellency Khalid Ali Al Bustani, Director General of the Federal Tax Authority, said: “The FTA is intensifying its regulatory efforts to monitor taxpayers’ compliance with tax laws across all their transactions. Of course, this combats tax evasion, but it also protects consumers from the smuggling of counterfeit excise products that do not meet the quality standards adopted in the UAE. For this reason, we will continue to intensify the Authority’s awareness campaigns to encourage and assist taxpayers in self-compliance.
“The adoption of the latest digital technologies has greatly contributed to improving the level of tax compliance and increasing the efficiency of our control operations. In addition to adopting new technologies to track, inspect and monitor smuggled and non-compliant products, the FTA’s strategic partnerships with government and private sector stakeholders are the other key factors in improving the level of tax compliance. These partnerships result in increasing the effectiveness of market control and raising tax awareness on the business sector and community levels,” His Excellency added.
His Excellency further explained that the ‘digital tax stamp’, which the FTA introduced more than six years ago, is an effective solution to tackle tax evasion, and facilitates inspection and control operations at customs ports and markets. At the same time, it prevents the sale of products that do not meet tax requirements. These stamps, known as digital stamps, are placed on tobacco product packages and are registered in the FTA’s database. Each stamp contains electronically registered information that can be read by a special device, confirming the tax payment on these products.
Last Updated on 2 days by News Desk 1
