FTA Collected AED 357 Million in H1 2025: How to Keep Your Business Compliant
- 15.08.2025
- Posted by: Uwe Hohmann
- Categories: Tax, Dubai
The FTA (Federal Tax Authority) announced that it collected AED 357 million in taxes and fines during the first six months of 2025. That is an 86% jump from the AED 192 million collected in the same period last year.
The numbers tell us one thing: the FTA is getting serious about compliance.
Why these numbers matter to your business
The FTA conducted 85,500 inspections in H1 2025, compared to 40,580 in H1 2024. That is more than double the inspection activity. Your chances of getting an inspection visit have increased significantly.
During these inspections, they seized over 17.6 million non-compliant goods. Most were tobacco products without proper digital tax stamps, but they also confiscated 6.1 million other excise goods, including soft drinks and energy drinks.
Common compliance issues we see
Based on the FTA data and our experience with clients, these are the most frequent problems:
Excise tax issues: Businesses selling tobacco, soft drinks, or energy drinks often miss excise tax requirements. The FTA seized 11.52 million tobacco packs without digital tax stamps in H1 2025 alone.
VAT documentation: Poor record-keeping remains a significant issue. When the FTA visits, they expect complete and accurate documentation for all transactions.
Registration problems: Some businesses operate without proper tax registrations or fail to update their details when circumstances change.
How to avoid penalties
Keep complete records: Maintain all invoices, receipts, and supporting documents for at least five years. The FTA uses digital technology to cross-check information, so accuracy is essential.
Register properly: Ensure your VAT registration is current and reflects your actual business activities. Update your registration within 20 business days of any changes.
Handle excise goods correctly: If you deal with tobacco, soft drinks, or energy drinks, verify that all products have proper tax stamps and are registered in the FTA system before sale.
File on time: Submit your returns by the deadline. Late filing carries penalties.
Signals that trigger inspections
The FTA targets businesses that show inconsistent reporting patterns, have unusually low VAT declarations relative to their business size, or operate in high-risk sectors like tobacco and beverages.
Businesses that frequently amend returns or have gaps in their filing history also attract attention.
Getting professional help
Tax compliance in the UAE has become more complex as the FTA enhances its enforcement capabilities. Many businesses find it worthwhile to work with tax professionals who understand the current requirements and can help maintain ongoing compliance.
Our team of experienced tax and compliance experts can help you manage these requirements and ensure your business stays compliant. Regular compliance reviews can identify potential issues before they become costly problems during an FTA inspection.
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