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Mon 8 Jan 2018 09:29 AM

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UAE launches new initiative to curtail VAT profiteering

The Ministry of Economy and the Federal Tax Authority create programme to detect violations and protect consumer rights

UAE launches new initiative to curtail VAT profiteering
Khalid Al Bustani, Director General of the Federal Tax Authority.

A new initiative has been launched by the UAE Ministry of Economy and the Federal Tax Authority to ensure the fair and transparent implementation of VAT across the country – with a particular focus on preventing unjustified price rises.

The new programme will include a number of awareness campaigns about what products are subject to VAT, as well as new requirements for invoices issued by shops and outlets offering taxable services.

In addition, there will be a new framework that will allow the FTA and the ministry to cooperate with other authorities to detect tax violations and take the required measures against any offenders.

The announcement came on Sunday following a meeting at the Ministry attended by Mohammed Ahmed bin Abdul Aziz Al Shehhi, Under-Secretary of the Ministry of Economy, Khalid Al Bustani, director-general of the FTA, representatives of the Economic Development Departments and entities responsible for protecting consumer rights.

The main topic on the agenda was preventing businesses from taking advantage of the introduction of the VAT to increase prices.

The FTA has also asked consumers to check that any invoices issued by UAE businesses include the tax breakdown in the price as well as the Tax Registration Number. The authority also reinforced the importance of avoiding uninformed or unreliable sources for VAT information.

“The efforts made by the Ministry of Economy towards protecting consumers are a crucial step in establishing systematic and accurate supervision of the market, as well as ensuring the implementation of the tax system according to the highest global standards, helping the UAE achieve sustainable development and boosting the performance of key sectors for the good of the entire society,” said Khalid Al Bustani, Director General of the FTA.

Back in December, the Commercial Compliance & Consumer Protection (CCCP) agency warned retailers not to manipulate prices in the wake of the implementation of VAT, while

The Department of Economic Development (DED) in Abu Dhabi has warned it will monitor any price hikes and asked consumers to report any violations and complaints.

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