FTA conducted 176,000 market inspection visits in 2025, up 89% YoY

The Federal Tax Authority (FTA) announced a significant increase in the number of on-ground inspection visits carried out by its specialised teams, in cooperation with relevant authorities, reaching approximately 176,000 field inspection visits across local markets in all emirates during 2025.

This reflects a year-on-year (YoY) increase of around 89%, compared to approximately 93,000 inspection visits in 2024.

The Authority affirmed that this comes as part of its ongoing efforts to strengthen supervisory and control measures aimed at combating tax evasion, enhancing tax compliance, and protecting consumers’ rights.

Abdulaziz Al Mulla, Director-General of the FTA, said, “The Authority continues its intensive efforts to contribute effectively to monitoring local markets, in cooperation with relevant authorities, to ensure compliance with tax legislation and procedures. FTA inspection operations rely on various electronic monitoring mechanisms to prevent the sale, circulation, or storage of products that do not comply with the requirements of Value Added Tax or Excise Tax, as applicable.”

He added that among the key mechanisms is the Tobacco Track and Trace System, which has undergone continuous development since its launch more than six years ago. Under this system, Digital Tax Stamps are affixed to tobacco product packs and registered in the Authority’s database. Each stamp includes electronically recorded information that can be scanned using a dedicated device used by authorised inspectors to verify that the applicable tax has been paid on such products.

He confirmed that the results of inspection campaigns conducted during 2025 reflect the success of the comprehensive oversight plans implemented with precision. The Authority is also intensifying its efforts to assist business sectors in complying with tax systems and procedures, as strategic partners, to support voluntary compliance and enable efficient and informed engagement with the tax system.

Sara AlHabshi, Tax Compliance Executive Director of the Tax Affairs Sector at the FTA, said, “The Authority is committed to protecting consumers from the circulation of harmful products that do not comply with the quality standards approved in the UAE. It is also committed to combating tax evasion through the precise implementation of the tax legislation and procedures, which clearly define all mutual obligations between the Authority and taxpayers, while ensuring full protection for consumers through strengthened oversight of the UAE markets.”

The Authority stated that its continuous control efforts resulted in the seizure and confiscation of 29.5 million non-compliant tobacco packs that did not bear Digital Tax Stamps during 2025, compared to approximately 11 million packs seized in 2024, representing an increase of 169%.

Additionally, approximately 7.6 million non-compliant packs of other excise goods were also seized, including carbonated drinks, energy drinks, and sweetened beverages, compared to approximately four million packs seized in 2024, reflecting an increase of more than 90%.

The Authority noted that the total value of tax dues and associated administrative penalties identified during inspection visits in 2025 exceeded Dhs608 million, compared to Dhs348 million in 2024, representing an increase of approximately 75%. The effective market monitoring contributed to detecting numerous establishments in violation of tax laws, and registration notifications were issued to non-compliant establishments.

WAM