Latest news with #ExciseTax
Daily Tribune
20-07-2025
- Business
- Daily Tribune
Bahrain's Revenue Bureau Uncovers 71 VAT Violations in Six Months
The National Bureau for Revenue (NBR) carried out 724 inspection visits across local markets in Bahrain during the first half of 2025, as part of its ongoing efforts to strengthen compliance with Value Added Tax (VAT) and Excise Tax regulations. In a statement, the NBR said these visits aim to protect consumer rights, combat tax evasion, and ensure that businesses apply VAT and excise rules properly. As a result of the inspections, the Bureau recorded 71 violations related to VAT laws, leading to administrative fines. The most common offense was the failure to comply with VAT invoicing requirements. Other violations included: Displaying prices without including VAT Not showing a valid VAT registration certificate Not issuing VAT invoices Issuing VAT invoices for goods or services that are not subject to VAT In terms of excise tax enforcement, the NBR identified 8 violations for possessing excise goods without paying the required tax. Legal actions and penalties were applied accordingly. Additionally, the inspections uncovered 8 suspected cases of VAT and excise tax evasion. Legal procedures are currently underway. The penalties for VAT evasion can include up to five years in prison and fines up to three times the evaded amount. For excise tax evasion, penalties can reach one year in prison and fines double the unpaid tax. The NBR emphasized the importance of complying with tax regulations and urged the public to report any violations. Reports can be made 24/7 via the call center (80008001), the Tawasul national complaints system, or by visiting the NBR's official website for more information.
Gulf Insider
20-07-2025
- Business
- Gulf Insider
Bahrain's Revenue Bureau Uncovers 71 VAT Violations In Six Months
The National Bureau for Revenue (NBR) carried out 724 inspection visits across local markets in Bahrain during the first half of 2025, as part of its ongoing efforts to strengthen compliance with Value Added Tax (VAT) and Excise Tax regulations. In a statement, the NBR said these visits aim to protect consumer rights, combat tax evasion, and ensure that businesses apply VAT and excise rules properly. As a result of the inspections, the Bureau recorded 71 violations related to VAT laws, leading to administrative fines. The most common offense was the failure to comply with VAT invoicing requirements. Other violations included: Displaying prices without including VAT Not showing a valid VAT registration certificate Not issuing VAT invoices Issuing VAT invoices for goods or services that are not subject to VAT In terms of excise tax enforcement, the NBR identified 8 violations for possessing excise goods without paying the required tax. Legal actions and penalties were applied accordingly. Additionally, the inspections uncovered 8 suspected cases of VAT and excise tax evasion. Legal procedures are currently underway. The penalties for VAT evasion can include up to five years in prison and fines up to three times the evaded amount. For excise tax evasion, penalties can reach one year in prison and fines double the unpaid tax. The NBR emphasized the importance of complying with tax regulations and urged the public to report any violations. Reports can be made 24/7 via the call center (80008001), the Tawasul national complaints system, or by visiting the NBR's official website for more information.
Dubai Eye
18-07-2025
- Business
- Dubai Eye
UAE excise tax on sweetened beverages to vary by sugar content
The UAE is introducing a major change to its excise tax on sugar-sweetened beverages. The Ministry of Finance and the Federal Tax Authority have announced a new tiered tax system that links the tax rate per litre to the drink's sugar content per 100ml. This means: the more sugar a drink contains, the higher the tax it will face — replacing the current flat-rate tax across all sugary drinks. Set to take effect at the start of 2026, the change is part of a wider push to promote healthier lifestyles, reduce sugar consumption, and encourage manufacturers to cut back on sugar in their products. Authorities say the updated model better reflects the health impact of sugar and gives consumers more power to make informed dietary choices. The new system was developed in coordination with the Ministry of Health and Prevention and aligns with the UAE's sustainable development goals. Officials have confirmed that businesses will be given ample time to adjust, with support and awareness campaigns planned to ensure a smooth transition. This also includes updating internal systems, reviewing product formulations and ensuring that their records with the Federal Tax Authority are aligned with the requirements of the enhanced model. More details are expected soon as the final legislation is prepared. Ministry of Finance and Federal Tax Authority announced a change in how the Excise Tax on sweetened beverages is applied. — وزارة المالية | الإمارات (@MOFUAE) July 18, 2025
Sharjah 24
14-07-2025
- Business
- Sharjah 24
FTA seizes over 3.5 million non-compliant excise goods
As part of its ongoing commitment to combat tax evasion, enhance tax compliance, and safeguard consumers, the FTA inspection team successfully uncovered the UAE-based operation, which was concealing an illegal cache of excise goods within shipments of clothing and footwear – in clear violation of UAE tax regulations. The FTA clarified that all seized excise goods have now been permanently confiscated, a tax assessment conducted, and corresponding fines have also been applied. The total number of illegal goods seized exceeded 3.5 million items. These included 1.56 million packs of cigarettes, 1.77 million packs of electronic smoking devices and accessories, 111,360 packs of raw tobacco, 4,000 packs of hookah tobacco, 121 packs of nicotine pouches, and 4,600 packs of excise beverages. The tax due on these products was equivalent to AED133.2 million, and legal action has been taken against the non-compliant establishments. The FTA stated that this operation is part of continuous monitoring efforts it undertakes in collaboration with the relevant local and federal authorities, and emphasised that – in order to avoid penalties and fines for non-compliance – producers, importers, and stockists of excise goods must adhere to the tax regulations set forth in Federal Law No. 7 of 2017 on Excise Tax and its amendments. In line with best international practices, the FTA confirmed that in its battle against tax evasion, it uses the latest advanced electronic control mechanisms, including the application of digital tax stamps on tobacco and tobacco-related products. Each stamp contains electronically registered data, which FTA inspectors verify to ensure the appropriate tax has been paid. The FTA also stressed its commitment to enhancing coordination and cooperation with all relevant federal and local government entities to ensure compliance with tax laws – across all seven emirates of the UAE.
Time of India
14-07-2025
- Business
- Time of India
UAE: Over 3.5 million illegal excise goods found hidden in clothing shipments during major FTA raid in Dubai
The FTA seized millions in untaxed tobacco and vaping products smuggled into Dubai, cleverly hidden among apparel shipments/ Image: (File) TL;DR FTA seized over 3.5 million smuggled excise goods in Dubai. Hidden tobacco and beverage products carried AED 133.2M in tax liability. Advanced tracking tech and joint enforcement boosted the raid's success. In a decisive move to curb tax evasion and protect consumers, a team from the Federal Tax Authority (FTA) seized more than 3.5 million illegal excise goods during a large-scale inspection operation at a facility in Dubai. The raid uncovered a sophisticated scheme involving fraudulently packaged tobacco and beverage products that were deliberately concealed and smuggled into the UAE market, according to a report by the Emirates News Agency (WAM) on Monday. Smuggling Operation Concealed Within Clothing and Footwear Shipments The illegal goods were found hidden within shipments labeled as clothing and footwear, an intentional attempt to bypass tax regulations and smuggle excise products into the country. The FTA described the activity as a clear violation of UAE tax laws, particularly those outlined in Federal Law No. 7 of 2017 on Excise Tax and its subsequent amendments. All seized products have now been permanently confiscated. A detailed tax assessment was carried out, and significant fines have been imposed on the non-compliant entities. Legal proceedings are also underway. Details of the Seized Goods and Financial Impact According to the FTA, the operation uncovered a substantial cache of excise goods, with the total number of seized items exceeding 3.5 by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Dementia Has Been Linked To a Common Habit. Do You Do It? Memory Health Learn More Undo million. The breakdown of seized goods is as follows: 1.56 million packs of cigarettes 1.77 million packs of electronic smoking devices and accessories 111,360 packs of raw tobacco 4,000 packs of hookah tobacco 121 packs of nicotine pouches 4,600 packs of excise beverages The total tax liability on these goods was calculated at AED 133.2 million($36.27 million), reflecting the scale of the attempted tax evasion. FTA's Technology-Driven Compliance Strategy The Federal Tax Authority emphasized that this operation forms part of its ongoing, comprehensive monitoring efforts conducted in collaboration with relevant local and federal entities. The Authority continues to adopt advanced electronic control mechanisms, including the use of digital tax stamps on tobacco and tobacco-related products. These stamps are embedded with electronically registered data, allowing FTA inspectors to verify that the correct excise taxes have been paid. This system is aligned with international best practices and is key to the UAE's strategy for enforcing tax compliance. The FTA reiterated that producers, importers, and stockists of excise goods must strictly adhere to the applicable tax regulations to avoid legal penalties, hefty fines, and confiscation of goods. IN the UAE, excise goods, such as cigarettes, shisha tobacco, electronic smoking devices, e-liquids, are strictly regulated under Federal Decree‑Law No. 7 of 2017 and Cabinet Decision No. 52 of 2019, which impose excise tax rates of 50–100 % on these harmful products. Importing, concealing, or supplying them without valid digital tax stamps and proper registration is illegal and subject to heavy penalties The Federal Tax Authority, a government entity established to manage tax affairs in the UAE, plays a critical role in overseeing the implementation, collection, and enforcement of taxes, and prevent illegal activities in the excise goods sector across all seven emirates Its mission includes promoting economic growth while ensuring effective, transparent tax compliance.
