There are situations in business where an unregistered company imports goods and has to pay VAT on import. Since these companies are not registered, the VAT they pay on import will not be collected on their tax return. These persons must pay import VAT by other means. There are two main ways to pay VAT on imports by an unregistered person. The method you choose depends on your import scenario. There are two ways to pay VAT on imports by unregistered persons:
Pay VAT on import
Pay VAT through e-guarantee
This article describes scenarios where unregistered persons are required to pay VAT on import, and the corresponding steps.
Scenarios for paying her VAT on import
The scenarios in which an unregistered person has to pay her VAT on import are:
Import of goods into the UAE mainland from outside the UAE
Import into the UAE for export of goods to a country that is not a member of the Gulf Cooperation Council and which implements VAT is subject to customs suspension
It will not be. Tariff suspension
does not apply if you import goods into the UAE for export to a GCC VAT country. We understand the process by which an unregistered person has to pay her VAT on import in the following cases:
Steps to pay VAT on import
1. Customs declaration
Importers must submit a customs declaration at their respective customs portal. Below:
Enter the required details for all imported items.
Enter the customs declaration for processing by the customs authorities.
Once the return is approved, the status will be ‘Pending Tax’.
2. Waiting for customs clearance.
Customs officials verify the declaration details and approve the declaration. The importer receives notification that the declaration has been approved.
Customs declaration is sent from Customs to FTA.
Note: Once a customs declaration is submitted to FTA, the customs system does not allow further processing of the form. The status of a tax return can only be changed to “Approved” or “Rejected”.
3. Create an e-services account on FTA Portal
. An unregistered person must create an e-services account on the FTA portal in order to make her VAT payment upon import.
The registration process is as follows:
Enter your email ID and unique password to log in as a new user.
You will receive an email on your registered email ID asking you to confirm your email ID.
Once your email ID is successfully verified, your E-Services account will be created and you will be able to log in to the FTA E-Services portal.
4. Log in to the FTA portal and complete your VAT payment
. The final step is for the unregistered individual to log into her FTA portal and pay her VAT payable on import. Import VAT is calculated based on the price of the product + customs duty + excise tax.
The steps to pay VAT on the FTA portal are detailed in the article Steps to pay VAT on the FTA portal.
Therefore, the procedure for an unregistered person to pay his VAT when importing goods is different from that for a registered person. In the next article, we will look at the steps by which an unregistered person has to pay her VAT when importing goods via e-guarantee.
You can also register for VAT Registration on our website: