Businesses charging VAT despite being unregistered, as well as those hiking prices beyond the five percent tax are being fined or forced to close
Abu Dhabi’s Department of Economic Development (DED) has announced it is shutting the doors to businesses hiking prices as a response to the implantation of VAT, enforcing a zero tolerance policy for what it calls “unjustifiably increased prices”.
The authority issued tickets 85 tickets and shut down 15 facilities in January after conducting 3,520 inspections across the emirate.
“Tickets were issued against those facilities that collected VAT without being registered in the tax system of the Federal Tax Authority and increased prices excessively for the period preceding the implementation of the tax by checking the previous bills,” said Ahmed Tarish Al Qubaisi, acting director of the Commercial Protection Administration.
“This is as per Item No. 77 of the Tickets Schedule in which it is stated that additional fees or services are imposed on the consumer unjustifiably, and Item No. 72 regarding the failure to adhere to the undertaking and the circulars presented by the DED or the instructions, conditions and controls issued by it,” he added.
The inspection campaigns in major outlets visited by large numbers of consumers are conducted “to ensure that these facilities do not raise prices unjustifiably and that they implement VAT for the facilities that are registered in the tax system of the Federal Tax Authority,” the statement added.
Al Qubaisi said that the DED had received 505 complaints during January about prices being hiked beyond the five percent VAT implement on January 1, or the tax value not being mentioned in their bills, and urged consumers to continue contacting the authority to report any violations of the VAT laws issued earlier.
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