The Federal Tax Authority (FTA) has ramped up its market inspections, conducting approximately 103,680 field visits during the first half of 2026. This represents a 21% increase compared to the roughly 85,500 inspections carried out in the same period last year. These efforts are part of the FTA’s ongoing commitment to enhance tax compliance, protect consumer rights, and combat tax evasion in collaboration with relevant authorities.
Significant Product Seizures
During these inspections across all emirates, FTA teams successfully seized around 8.45 million non-compliant selective products in the first six months of 2026. This marks a decrease from the 17.6 million violations recorded in the first half of 2025. Notably, they identified 6.58 million suspect tobacco products, down from 15.8 million in the prior year. Additionally, 1.87 million non-compliant items from other selective goods, such as carbonated drinks, energy drinks, and sweetened beverages, were seized, compared to 1.7 million in the same timeframe of 2025.
Increased Notification of Tax Registrations
Furthermore, the FTA issued approximately 3,300 registration notifications to taxpayers not registered for value-added tax (VAT), which is an increase from 2,850 notifications dispatched during the same period last year.
Continued Commitment to Market Oversight
Abdulaziz Mohammed Al Mulla, the Director-General of the FTA, stated that the authority remains dedicated to improving market oversight and preventing the infiltration of smuggled products into the nation’s markets. Ensuring high levels of compliance with tax regulations and protecting consumers is paramount, particularly in addressing issues of commercial fraud and the distribution of substandard and counterfeit products that can adversely impact quality of life.
Collaborative Efforts to Enhance Inspection Efficiency
Al Mulla noted that the continuous collaboration between the FTA and its strategic partners from federal and local authorities is crucial for enhancing the efficiency and speed of regulatory operations across the country. This partnership facilitates information exchange and leverages the advanced capabilities of involved agencies, including skilled personnel, logistical support services, and monitoring systems that meet international standards.
Positive Results from Inspection Campaigns
Sarah Al Habashi, the Executive Director of the FTA’s Tax Compliance Sector, highlighted that the inspection campaigns have successfully achieved significant regulatory outcomes. The total value of tax liabilities and fines associated with the non-compliant goods seized during inspections in the first half of this year exceeded 174 million dirhams. These activities are aimed at ensuring compliance with tax laws, especially regarding the issuance of tax invoices for sales, the declaration of inclusive prices, and guaranteeing the payment of due taxes on traded products, while also identifying instances of tax evasion and other violations.