Image credit: WAM/Website
The Federal Tax Authority (FTA) in UAE has significantly ramped up its oversight and inspection efforts in 2025, conducting record-breaking field visits to ensure tax compliance across UAE markets.
Read-UAE firms must register for corporate tax by July 31 to avoid Dhs10,000 penalty
In a statement issued on August 11, the FTA revealed that its inspection teams carried out 85,500 field visits during the first half of the year. This represents a 110.7 per cent increase compared to the same period in 2024, when 40,580 inspections were conducted, a WAM report said.
The authority said these campaigns aim to enhance compliance, protect consumer rights, and combat tax evasion in collaboration with relevant government bodies.
Sharp rise in collected taxes and fines
As a result of these inspections, the FTA reported that it had collected a total of Dhs357.22m in taxes and fines, an 86.29 per cent increase compared to Dhs191.75m collected during the same period in 2024.
The inspections were carried out across various markets and sectors, focusing on detecting violations of tax laws, particularly in the excise tax segment.
Surge in seized non-compliant products
One of the most striking outcomes of the campaign was the seizure of over 17.6 million non-compliant excise goods, up 144.44 per cent from 7.2 million items confiscated in the first half of 2024.
Among these were 11.52 million packs of non-compliant tobacco products, which lacked Digital Tax Stamps and were not registered in the FTA’s electronic system. This figure more than doubled compared to 5.52 million packs seized during the same period last year, an increase of 108.7 per cent.
Additionally, the FTA seized 6.1 million non-compliant goods such as soft drinks, energy drinks, and sweetened beverages. That number was more than 3.5 times the 1.74 million such goods seized in H1 2024, marking an increase of over 250 per cent.
Technology-driven oversight
Sara AlHabshi, Executive Director of Tax Compliance in the Tax Affairs Sector at the FTA, highlighted the Authority’s expanded efforts in enforcing tax legislation.
“Our intensified inspections are a critical part of our strategy to combat tax evasion and protect consumers from non-compliant products that fail to meet market standards,” AlHabshi said.
She noted that the FTA is leveraging advanced digital technologies to boost the effectiveness and efficiency of its inspection operations.
“These technologies are essential in identifying and tracking smuggled goods that do not meet the UAE’s tax requirements. They allow us to respond quickly and thoroughly to violations,” she added.
Continued market oversight
AlHabshi also emphasised the FTA’s commitment to maintaining ongoing inspection campaigns in partnership with strategic government entities across the UAE.
“Our goal is to strengthen market control mechanisms and ensure transparency and governance across all tax procedures,” she said. “This helps prevent the sale, storage, or distribution of products that violate tax laws.”
The Authority confirmed that such inspections will remain a core component of its regulatory mandate throughout the remainder of 2025.
