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Illegal Price Hike After VAT In UAE

Illegal Price Hike after VAT in UAE

DED department of UAE in January conducted 3,520 inspections across Abu Dhabi, Al Ain.

15 Commercial setup has been shut due to the violation of price hike after VAT. Earlier circulars were issued in order to counter the price hike after VAT in UAE.  DED is conducting continuous operations in this regard to check unpardonably climb prices from the start of the current year.
Intentional violations were noticed at various points after the report released by DED’s Commercial Protection Administration, which monitors the performance at various business points in the emirate to avoid any intentional price hike as per the orders implemented by DED regarding the commitment to implementing VAT regulations.

Acting Director Ahmed Tarish Al Qubaisi of the Commercial Protection Administration, stated that DED has done 98 campaigns, 50 of which were done in Abu Dhabi, 28 in Al Ain and 20 in the Al Dhafra Region. The main point of focus was the sale and shops in the markets, numerous consumers visited to ensure the implementation of VAT in the registered setup to avoid the unjustifiable raise prices as per the tax system of the Federal Tax Authority.

Random Inspections
Total inspection 3,520 conducted in January 1350 were done in Abu Dhabi, 1,120 in Al Ain and 1,050 in Al Dhafra. 85 tickets were issued as a result of these inspections, 47 of which were issued in Abu Dhabi, 34 in Al Ain, and 4 in Al Dhafra. The tickets were issued against those points that were gaining VAT although they were not even registered in the tax net system of the Federal Tax Authority. This is done as per clause No. 77 of the Tickets agenda in which it is mentioned that extra fees or services are forced on the consumer unreasonably, next to that is Item No. 72 which address the failure to stick with the rules and regulations implemented by DED or the work instructions, terms & conditions issued.

Action against Complaints

DED received 505 consumer complaints during the 1st month of implementation, 250 were received in Abu Dhabi, 210 in Al Ain and 45 in Al Dhafra. He the main reason behind the complaint was the intentional increase in prices even tax value not mentioned in the bill also mentioned extra over five percent.
DED requested the consumers to have a check on bills and contact the DED through the Contact Centre of the Abu Dhabi Government in case they spot any unambiguous violations in VAT implementation.

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