The Federal Tax Authority (FTA) in the United Arab Emirates has taken significant steps to enforce tax compliance among businesses. The FTA issued registration notices to several establishments, urging them to register their companies to adhere to tax regulations. In addition to issuing fines, the FTA seized 11 million packages of non-compliant tobacco products without digital tax stamps and 3.9 million packages of excise goods, such as energy drinks, soft drinks, and sweetened beverages.
The FTA announced its commitment to intensify regulatory efforts to monitor taxpayers and their transactions. The primary goal of this initiative is not only to combat tax violators but also to safeguard consumers. In 2024, the UAE identified over AED 348 million in tax dues and fines after conducting 93,000 field inspections nationwide, marking a significant increase of 135.22% from the 40,000 inspections carried out in 2023.
As a government entity responsible for tax administration, collection, and enforcement, the FTA collaborated with relevant authorities to combat tax evasion and enhance tax compliance throughout the country. Market surveillance was utilized by the FTA and other government bodies to identify businesses that violated tax laws, contributing to the overall effort to maintain fairness and transparency in the tax system.
