A number of retail chains in Dubai began to raise prices for goods before the introduction of VAT. Violators were fined.
Fourteen retailers were fined in Dubai for illegally raising product prices on December 31, the day before the introduction of VAT in the UAE.
Inspections that revealed violations were carried out by the Department of Economic Development (DED) on New Year's Eve after receiving relevant complaints from clients.
Abdul Aziz Al Tannak, director of commercial control at DED, said inspectors were sent to malls, restaurants, and supermarkets to ensure that retailers do not start charging a 5 percent tax ahead of time.
Ahmed Al-Zaabi, senior consumer information manager at DED, said that several awareness-raising campaigns were launched in December on how to comply with VAT rules in the context of consumer protection. He encouraged retailers to work with inspectors.
The Ministry of Finance has previously stated that fines for coercion to overpay VAT start at 500 dirhams ($ 136) and reach 15 thousand dirhams ($ 4 thousand) for repeated violations.
Mr. Al-Zaabi also called on the public to check checks and report any alleged wrongdoing.
The Federal Tax Administration has stated that all enterprises registered for VAT must indicate their tax registration number, price including VAT and tax amount.
Unregistered companies cannot levy VAT.
