The UAE Federal Tax Authority has published FTA Decision No. 7 of 2026, setting out procedures for dealing with certain seized and abandoned goods. The Decision was issued on 11 June 2026 and is classified by the FTA under Federal Tax Procedures. The Decision mainly deals with goods that are perishable, subject to shortage or leakage, or in a condition that could endanger other goods or the facilities where they are stored.
How Will Seized Goods Be Handled?
Where goods are seized, the FTA must store and move them in a manner that preserves their condition, quality and quantity. This includes appropriate storage arrangements, transportation procedures and maintaining stocktaking records before, during and after movement of the goods.
Can the FTA Sell Seized or Abandoned Goods?
Yes, subject to the conditions specified in the Decision. Among other requirements, the goods must fall within the categories covered by the Decision, and the owner must have failed to retrieve them after settling the relevant tax, administrative penalties and related expenses, or have exhausted or waived the right to retrieve them. The goods must also retain value and generally be legally permitted to be sold or circulated in the UAE, subject to the specific export provisions. Where goods are connected with an investigation or pending legal proceedings, approval from the Public Prosecution or competent court is required before the sale process begins.
How Will the Goods Be Sold?
Qualifying goods may be sold through a public auction following a decision of the relevant Committee. The owner or representative must be notified of the sale decision, reasons and date. The FTA will engage a licensed auction service provider, and a sale certificate will be issued to evidence completion of the sale and transfer of ownership to the buyer.
What Happens to the Auction Proceeds?
This is one of the key practical aspects of the Decision. The proceeds are applied in the following order:
Auction, storage, movement costs
Outstanding tax liabilities
Administrative penalties
Remaining amount
Where the owner has exhausted the right to retrieve the goods, the FTA may deposit the remaining amount into the owner’s tax account. Where the owner has waived the right to recover the remaining amount, the FTA may instead include that amount within the Authority’s other revenues.
What Does This Mean for UAE Businesses?
For most businesses, FTA Decision No. 7 of 2026 does not create a new routine tax-compliance process. Rather, it provides a formal framework governing how the FTA deals with specified seized and abandoned goods, including their storage, movement, sale by public auction and allocation of sale proceeds. Businesses dealing with an actual seizure or abandonment situation should therefore carefully consider the Decision together with the wider UAE Tax Procedures framework and the specific facts of their case.
Key Takeaway
Seized goods are not simply disposed of automatically.
The Decision establishes a structured process covering:
Preservation of Goods → Conditions for Sale → Owner Notification → Public Auction → Settlement of Costs, Tax and Penalties → Treatment of Remaining Proceeds
Disclaimer: This article is for general information only and should not be considered tax or legal advice.
