During 2707 inspection visits in the first quarter of 2021
75 million dirhams tax dues allocated by the Federal Tax Authority
Khaled Al-Bustani: “The tax compliance rates that have been monitored confirm the success of the authority’s control efforts.”
The Federal Tax Authority, in cooperation with the concerned authorities, carried out 2707 field inspection visits through 35 campaigns in the local markets in all the emirates of the country during the first quarter of this year, during which 256 violations related to value added tax and 248 violations (seizure) for violating products within a category were seized. Goods subject to excise tax, the total value allocated by the authority reached 75 million dirhams, represented by about 3.3 million packs of infringing tobacco and its products that do not carry "digital tax stamps", and about 58.2 thousand kilograms of irregular hookah tobacco products that do not carry "tax stamps." Digital », and 1316 electronic smoking tools and their accessories are not registered in the electronic system of the Federal Tax Authority.
The authority stated, in a statement yesterday, that during the inspection visits, more than 11 thousand and 166 violating packages of other selective goods were seized, including soft drinks, energy drinks and sweetened drinks.
The Director General of the Authority, Khaled Ali Al-Bustani, confirmed that the advanced methods applied by the authority during inspections, which are in line with best practices, enable inspection teams to carry out their tasks with great accuracy, through the latest field and electronic mechanisms, which contributes to tightening control over markets to prevent selling Or trading or storing products that do not comply with VAT or excise tax due.
He explained that among these important mechanisms is the system of marking distinctive signs on tobacco and its products, which came into effect as of January 1, 2019 in implementation of Cabinet Resolution No. (42) of 2018 in this regard, whereby "digital tax stamps" are installed on boxes Cigarettes, tobacco and its products, including hookah tobacco and cigarette rolls that are electrically heated, after these stamps have been registered in the Authority’s database, and each stamp contains information recorded electronically that can be read by a special device used by authorized inspectors to ensure payment of the tax on these products.
He added: "The tax compliance rates that were monitored based on the results of the inspection campaigns carried out during the first quarter of this year confirm the success of the control efforts of the Federal Tax Authority, in cooperation with other concerned authorities, and at the same time the authority intensifies its efforts to help businesses comply with tax regulations and procedures."
In turn, the Director of the Tax Compliance and Enforcement Department at the Federal Tax Authority, Sarah Al-Habashi, said that “the percentage of compliance with value-added tax legislation among commercial establishments covered by the inspection campaigns implemented during the first quarter of 2021 has exceeded 77%, which is an indication of the remarkable improvement in rates Tax commitment in the state market ».
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