The Federal Tax Authority conducted approximately 103.68 thousand field inspection visits in local markets during the first half of the current year, marking a 21% increase compared to about 85.5 thousand inspections carried out during the first half of 2025, according to official figures released by the agency.
Inspection Campaigns Target Counterfeit and Smuggled Goods Across Emirates
During the field visits across all emirates, inspection teams seized and confiscated 8.45 million items of non-compliant selective goods in the first six months of 2026, dropping from 17.6 million non-compliant items seized during the same period in 2025. According to the authority, the totals included 6.58 million non-compliant cartons of tobacco and tobacco products, compared to 15.8 million confiscated cartons during the first half of last year. Additionally, inspectors intercepted 1.87 million packages of other selective goods—including carbonated drinks, energy drinks, and sweetened beverages—compared to 1.7 million packages seized in the first six months of 2025.
Alongside product seizures, the authority issued 3.3 thousand registration notices to individuals and entities not registered for Value Added Tax. This figure compares to 2.85 thousand notices issued during the corresponding period of the previous year.
Did You Know? The Federal Tax Authority’s inspection teams cover local markets across all emirates to verify tax registration, monitor price declarations inclusive of tax, and ensure proper issuance of tax invoices for sales.
Strategic Enforcement and Financial Impact of First-Half Audits
Abdulaziz Mohammad Al Mulla, Director-General of the Federal Tax Authority, stated that the agency continues its efforts to reinforce market surveillance and prevent the influx of smuggled products. Al Mulla emphasized that these measures protect consumers, combat commercial fraud, and prevent the trade of substandard and counterfeit goods that negatively impact quality of life. He also noted that continuous cooperation between the authority and strategic partners—including federal and local entities—serves as a core factor in accelerating and expanding supervisory operations through information sharing, logistical support, and advanced tracking systems.
Sara Al Habshi, Executive Director of Tax Compliance Sector at the Federal Tax Authority, reported that the total value of tax dues and administrative fines linked to non-compliant goods seized during the first half of the year exceeded 174 million dirhams. Al Habshi explained that these findings reflect active regulatory outcomes aimed at ensuring adherence to tax legislation, verifying sales invoice issuance, and collecting due taxes on products circulating in local markets.
Frequently Asked Questions
How many field inspection visits were conducted in the first half of the current year?
The Federal Tax Authority carried out approximately 103.68 thousand field inspection visits during the first half of the current year, compared to about 85.5 thousand visits in the first half of 2025.
What types of non-compliant products were confiscated by inspectors?
Seizures included 6.58 million cartons of tobacco and tobacco products, alongside 1.87 million packages of other selective goods such as carbonated drinks, energy drinks, and sweetened beverages.
What was the total financial value of tax dues and fines from the seized goods?
The total value of tax dues and associated fines for the non-compliant goods seized during the first half of the year exceeded 174 million dirhams.
How do you view the ongoing cooperation between tax authorities and strategic partners in shaping local market compliance?