In our previous article, ‘Steps to Submit e-Guarantee in FTA Portal’, we discussed how to submit an e-guarantee in the FTA portal. Once the e-guarantee is submitted and approved, goods can be cleared through Customs. E-guarantees are required in certain import scenarios by non-registrants, such as

a. Transferring goods between VAT-designated zones

b. Importing goods into the UAE under customs duty suspension

These scenarios usually occur when the importer is exempt from paying VAT upon meeting specific conditions. If these conditions are met, VAT is not due on the import. However, if they are not met, the e-guarantee acts as financial security for the VAT payment. If the conditions for the VAT waiver are fulfilled, the previously submitted e-guarantee can be canceled.

Now, let’s look at the steps to cancel a submitted e-guarantee in the FTA portal:

Steps to Cancel e-Guarantee in FTA Portal:
To cancel an e-guarantee in the FTA portal, follow these steps: First, log in to the FTA portal using your credentials. Once logged in, navigate to the ‘VAT’ tab on the dashboard. From there, locate the section related to e-guarantees, where you’ll find the option to manage or cancel your submitted e-guarantee. Select the e-guarantee you wish to cancel, and follow the prompts to confirm the cancellation. Ensure all conditions for VAT exemption have been met before proceeding with the cancellation to avoid any issues.

Non-registrants importing goods under specific scenarios in the UAE are required to submit an e-guarantee for the import process. Once the goods are cleared by Customs and the conditions for a waiver of import VAT are met, the previously submitted e-guarantee can be canceled by following the steps outlined above. To know more details visit https://thevatconsultant.com