The Federal Tax Authority (FTA) can now sell perishable, leaking, or otherwise at-risk seized and abandoned goods at public auction under a clear, documented procedure. FTA Decision No. 7 of 2026 on Procedures for the Disposal of Seized and Abandoned Goods was issued on 11 June 2026, took effect on 30 July 2026, and its unofficial English translation was published on 19 August 2026. If your business has had goods seized during an FTA inspection – or has goods sitting unclaimed in FTA storage – this Decision sets out exactly when and how those goods can be sold, and what happens to the money afterward.
This article walks through the Decision article by article, in plain business language, and explains what it means if you’re on the receiving end of a seizure.
What Is FTA Decision No. 7 of 2026?
The Decision was issued by the Chairman of the FTA’s Board of Directors under the authority of Federal Decree-Law No. 13 of 2016 (establishing the FTA) and Federal Decree-Law No. 28 of 2022 on Tax Procedures, together with its Executive Regulation, Cabinet Decision No. 74 of 2023. It formalizes procedures the FTA already had a legal basis to use – Article 26 of the Tax Procedures Law gives the FTA the right to store, transfer, retain, destroy, recycle, or sell seized perishable, diminishable, or leaking goods, as well as to dispose of abandoned goods – but had not previously been published at this level of operational detail.
In short, the Decision doesn’t create a new power. It sets out the controls, sequencing, and paperwork the FTA must follow when using a power it already had.
Which Goods Does the Decision Cover?
Under Article 2, the Decision applies only to seized or abandoned goods that fall into one of three categories:
- Perishable goods — items that will lose value or become unusable over time
- Goods subject to shortage or leakage — for example, liquids, gases, or products prone to spillage or evaporation during storage
- Goods in a condition that could endanger the safety of other stored goods or the facility housing them
Goods that don’t meet one of these conditions fall outside this specific Decision and would be handled under the FTA’s general seizure and retention procedures instead.
Key Definitions to Know (Article 1)
Three terms in the Decision are worth understanding before anything else:
- Disposition — any action the FTA takes regarding seized goods, including sale, storage, movement, destruction, or disposal
- Public Auction — the formal sale process in which goods go to the highest bidder, run under the criteria this Decision establishes
- Committee — a group formed by the FTA Director-General specifically to identify naturally perishable goods, recommend what should happen to them, and oversee the disposal process
The Committee is the body making the actual sale decisions – not an individual inspector or auditor.
How the FTA Stores and Moves Seized Goods (Article 3)
Before any sale is considered, the FTA is required to store and move seized goods in a way that preserves their condition, quality, and quantity – partly so goods can still be returned to the owner if warranted, and partly so an accurate valuation is possible if a sale does go ahead. The Decision requires the FTA to:
- Determine appropriate storage and movement conditions for each seized good
- Select a storage location that meets approved criteria, either in-house or with a third-party service provider when special conditions apply.
- Use designated government vehicles for transport, or an appointed external provider where necessary.
- Maintain stocktaking records before, during, and after any move, and reconcile them against inventory.
- Prepare periodic condition and stocktaking reports, plus access and movement logs for security purposes.
For a business trying to recover seized goods, this matters because it creates a documented paper trail – records you can request or reference if there’s a dispute over the condition or quantity of goods that were seized.
When Can the FTA Actually Sell Seized or Abandoned Goods? (Article 4)
This is the section most business owners will care about. The FTA may sell seized or abandoned goods only when all four of the following conditions are met:
- The goods are perishable, subject to shortage or leakage, or could endanger the facility or surrounding environment.
- The owner (or their representative) has not requested retrieval after settling the full Tax and Administrative Penalties due, plus any related expenses, or has exhausted or waived their right to retrieve the goods.
- The goods still have value despite their perishable or deteriorating nature (goods that have lost all value are handled differently, not sold)
- The goods are of a type legally permitted for sale and circulation within the UAE – unless they’re specifically being sold for export.
Condition 2 is the practical takeaway for most businesses: settling the outstanding tax and penalties, and formally requesting retrieval, is what keeps goods out of auction. Once that window closes, the Committee can move toward a sale.
Separately, if the goods were seized for investigation purposes or are tied to ongoing legal proceedings, the FTA must first get approval from the public prosecution or the relevant court before starting any sale procedure. Goods under active legal dispute aren’t simply auctioned off on the FTA’s own authority.
The Public Auction Process, Step by Step (Article 5)
Once the Article 4 conditions are satisfied, the Decision sets out a five-step process:
- Committee decision — the Committee formally decides to proceed with a Public Auction.
- Owner notification — the goods’ owner (or representative) is notified of the sale decision, the reasons for it, and the sale date.
- Licensed auction provider appointed — the FTA contracts a licensed auction service provider to run the sale, following criteria the Committee sets: reserve price, auction method, payment and delivery terms, participation rules, how the auction is announced, and what happens if an auction doesn’t complete.
- Handover and sale certificate — sold goods are handed to the buyer, and the Committee issues a sale certificate confirming the transaction and transfer of ownership. From that point, the FTA has no further liability for how the goods are used or circulated.
- Export proof where relevant — if the goods didn’t meet local sale standards and were instead sold for export, the buyer must give the FTA proof that the goods were actually exported.
How the Sale Proceeds Are Allocated (Article 6)
Auction proceeds don’t go straight to the FTA’s general revenue. Article 6 sets a strict payout order:
- Auction, storage, and movement costs are settled first.
- Outstanding Tax owed by the taxpayer whose goods were seized (or who abandoned them) is settled next.
- Administrative Penalties owed by that taxpayer are settled after that.
- Any remaining balance — if the owner has exhausted their right to retrieve the goods – is deposited into the owner’s own tax account.
- As an exception, if the owner has waived their right to recover that remaining balance, the FTA may instead include it in the Authority’s general revenue.
This is a meaningful protection for taxpayers: even after a forced sale, any surplus above what’s owed is meant to come back to you (via your tax account) unless you’ve explicitly waived that right.
Effective Date and Legal Basis (Article 7)
The Decision took effect on its publication date in the UAE Official Gazette. It sits alongside – and operationalizes – Article 26 of Federal Decree-Law No. 28 of 2022 on Tax Procedures, which already permits the FTA to store, move, retain, destroy, recycle, or sell seized perishable or leaking goods, and to dispose of abandoned goods, without prejudice to the taxpayer’s underlying liability for tax and penalties.
What This Means for Your Business
If your goods – excise products, VAT-relevant stock, or anything else – have been seized during an FTA inspection or compliance action, three practical points follow from this Decision:
- Time matters. The clock that determines whether goods can be sold starts running once retrieval is not requested after outstanding tax and penalties are settled. Acting promptly protects your ability to recover the goods rather than their sale value.
- Documentation works in your favor. The Decision’s storage, movement, and stocktaking requirements mean the FTA has to keep detailed records – records you can reference if there’s ever a dispute about condition or quantity.
- A forced sale isn’t necessarily a total loss. Under Article 6, any surplus proceeds after tax, penalties, and costs are settled are meant to be credited back to your tax account, not simply absorbed by the Authority.
Frequently Asked Questions
What is FTA Decision No. 7 of 2026 about?
It sets out the procedures the UAE Federal Tax Authority must follow to store, move, and – where conditions are met – sell seized or abandoned goods at public auction.
When did FTA Decision No. 7 of 2026 come into effect?
It was issued on 11 June 2026 and became effective on 30 July 2026, with an unofficial English translation published on 19 August 2026.
Which goods can the FTA sell under this Decision?
Only seized or abandoned goods that are perishable, subject to shortage or leakage, or that could endanger the safety of other goods or the storage facility.
Can I get my seized goods back before they're auctioned?
Yes – if you settle the full outstanding Tax and Administrative Penalties (plus related expenses) and formally request retrieval before the FTA proceeds with a sale, the goods should not go to auction.
What happens to the money if my seized goods are sold?
Proceeds first cover auction, storage, and movement costs, then outstanding Tax, then Administrative Penalties. Any remaining balance is generally credited to the owner’s tax account, unless the owner has waived that right.
Does this Decision create a new FTA power?
No. The underlying authority already existed under Article 26 of Federal Decree-Law No. 28 of 2022 on Tax Procedures. This Decision documents the specific procedures and controls for exercising that power.
Conclusion
FTA Decision No. 7 of 2026 doesn’t change what the FTA is allowed to do with seized or abandoned goods – it changes how transparently and procedurally it has to do it. For businesses, the practical priority is the same as it’s always been: resolve outstanding tax and penalties on seized goods quickly, and formally request retrieval before the Committee’s window for a sale opens.
If your business has goods currently held by the FTA, or you want to understand your exposure under a live inspection, it’s worth getting the specific facts of your case reviewed against this Decision and the underlying Tax Procedures Law before the retrieval window closes.
Speak with a tax advisor about your specific seizure or compliance situation before deciding how to respond to an FTA notice.
Author:
The SEO and content team prepared this article at NR Doshi & Partners, a UAE-based, FTA-approved chartered accountancy and business advisory firm established in 1985, with seven offices across the UAE and membership in DFK International. NR Doshi & Partners advises businesses on VAT, Corporate Tax, and FTA compliance matters, including tax procedure and enforcement issues.
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