In our previous article, Process for paying VAT on import by non-registered persons, we learned about the process for paying VAT on import by non-registered persons in certain scenarios. In this article, we would like to understand the scenarios where an unregistered individual has to pay her VAT on import using e-guarantee and the corresponding process.
Scenarios for VAT payments with electronic guarantees
Movement of goods from one VAT zone to another
Importation of goods into the UAE during customs suspension. Suspension of customs duties applies to certain goods where the importer does not have to pay customs duty or has a reduced duty rate.
Now let us understand the process by which an unregistered person has to pay her VAT in such cases.
Process for VAT Payment on Import
1. Customs declaration
Importers must complete a customs declaration and submit it to their respective customs portal and take the following steps:
1. Provide necessary details of all imported goods.
2. Submit the customs declaration for processing by customs.
Once the return is approved, it will be switched to the “Tax Pending” status.
Note: Once the customs declaration form is submitted to his FTA, the customs system will not allow further processing of the form. The status of a tax return can only be changed to “Approved” or “Rejected”.
Note: The customs system will not permit any more form changes after the Customs declaration has been submitted to the FTA. Only “Approved” or “Declined” can be selected as the declaration form’s status.
2. Obtaining an E-Guarantee (Financial Security)
Importer must obtain an E-Guarantee from the bank. This process is as follows:
Obtain an electronic guarantee from your bank equal to the amount of VAT payable.
Obtain an electronic warranty reference number.
3. Create an electronic service account on the FTA portal.
. An unregistered person must create an electronic service account on the FTA portal in order to deposit her VAT payable on imports. The sign-up process is as follows:
Enter your email ID and unique password to sign 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-Service account will be created and you will be able to log in to the FTA E-Service Portal
. 4. Log in to the FTA portal and complete VAT Import Declaration Form
. The importer must log into the FTA e-Services portal and enter her e-warranty number received from her bank. This electronic guarantee number must be entered in the “Father Tax 301 – Import Declaration” form for VAT payment. Once the e-warranty number has been sent, customs clearance will be completed.
The steps for submitting an e-warranty number on the FTA E-Services portal are detailed in the article “Process of e-warranty submission on the FTA portal”.
Therefore, the process of paying his VAT on import for an unregistered person is different from that for a registered person. In certain import scenarios, unregistered importers are required to obtain an electronic guarantee from their bank and submit it to the FTA e-services portal.
You can also register for VAT Registration on our website: