Home Business News AED 174 Million in Tax Liabilities and Administrative Penalties Associated with 8.5...

AED 174 Million in Tax Liabilities and Administrative Penalties Associated with 8.5 Million Non-Compliant Excise Products Seized Across UAE Markets During First Half of 2026

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FTA Conducts 103,680 Inspection Visits in Six Months, up 21%

Abu Dhabi,August 2026: The Federal Tax Authority (FTA) conducted approximately 103,680 field inspection visits across local markets during the first six months of 2026, compared to approximately 86,000 inspection visits during the first half of last year, representing a 21% increase.
The inspections were conducted as part of the Authority’s regulatory efforts, in cooperation with the relevant entities, to enhance tax compliance, protect consumer rights, and combat tax evasion.
The Authority confirmed that, during the visits conducted across all emirates, its teams seized and confiscated 8.45 million non-compliant excise products during the first half of this year, compared to 17.6 million in the corresponding period in 2025.
The seizures included 6.58 million non-compliant packages of tobacco and tobacco products, compared to 15.8 million during the first half of last year. In addition, 1.87 million non-compliant packages of other excise goods, including carbonated drinks, energy drinks, and sweetened beverages, were seized, compared to 1.7 million packages seized during the first six months of 2025.
The Authority also issued 3,343 registration notices to persons who were not registered for Value Added Tax, compared to 2,845 notices issued during the same period last year.
His Excellency Abdulaziz Mohammed Al Mulla, Director General of the Federal Tax Authority, said: “The Authority continues its efforts to enhance market supervision and prevent smuggled products from entering the UAE’s markets. These efforts aim to maintain high levels of compliance with tax legislation and procedures, which clearly define the obligations of the Authority and taxable persons. The Authority is also fully committed to protecting consumers, combating commercial fraud, and preventing the trade of low-quality and counterfeit products that negatively affect quality of life.”
He added: “The close and ongoing cooperation between the Authority and its strategic partners from the relevant federal and local entities is a key factor in enhancing the efficiency, speed, and effectiveness of regulatory operations across all areas of the UAE. This is achieved through the exchange of information and the utilisation of the advanced capabilities available to the relevant entities, including qualified personnel, logistical support services, and monitoring and tracking systems that comply with international best practices.”
Sarah AlHabshi, Executive Director of the Tax Compliance Sector at the Federal Tax Authority, said: “The indicators confirm that the Authority’s inspection campaigns have delivered strong regulatory outcomes. The total value of tax dues and fines associated with the non-compliant goods seized during inspection visits conducted by the Authority’s inspection teams in the first six months of this year exceeded AED 174 million.”
She added that the inspections aim to ensure compliance with tax laws, particularly regarding the issuance of tax invoices for sales, the display of tax-inclusive prices, and the payment of tax due on products traded in the markets. The inspections also aim to identify cases of tax evasion and other violations of the applicable tax legislation.
The FTA was established pursuant to Federal Decree-Law No. (13) of 2016 with the objective of contributing to the implementation of the UAE’s economic diversification strategy and increasing non-oil revenues through the administration and collection of federal taxes in accordance with international best practices and standards. The Authority provides all necessary support and assistance to enable taxable persons to comply with tax laws and procedures governing their dealings with the Authority. Since its launch in 2017, the Authority has cooperated with relevant entities to establish a comprehensive and balanced tax system, making the UAE one of the first countries globally to implement a fully electronic tax system that encourages voluntary compliance through simplified and efficient procedures, starting from registration through to tax return submission and payment of due taxes via the Authority’s website: www.tax.gov.ae.

 

About Federal Tax Authority:

The Federal Tax Authority was established by Federal Decree-Law No. 13 of 2016 to help diversify the national economy and increase non-oil revenues in the UAE through the management and collection of federal taxes based on international best practices and standards, as well as to provide all means of support to enable taxpayers to comply with the tax laws and procedures. Since its inception in 2017, the FTA has been committed to cooperate with the competent authorities to establish a comprehensive and balanced system to make the UAE one of the first countries in the world to implement a fully electronic tax system that encourages voluntary compliance, with simple procedures based on the highest standards of transparency and accuracy – beginning from registration, to the submission of tax returns, to the payment of due taxes through the Authority’s website: http://www.tax.gov.ae.