In the previous article “The process of unregistered persons paying VAT when importing”, we learned about the process of unregistered persons paying VAT when importing under certain circumstances. In this article, let us understand the situation and process of unregistered persons who must use electronic deposit to pay import value-added tax.

Scheme of paying value-added tax through electronic deposit

1. Transfer goods from one VAT designated area to another VAT designated area

2. Import the goods into the UAE after the tariff is suspended. Tariff suspension applies to certain specific commodities, and importers must pay zero or reduced tariffs on these commodities.

Let us now understand the process by which unregistered persons must pay VAT in this case.

Import VAT payment process

a. Customs

Importers should prepare and submit a customs declaration form on the corresponding customs portal website and perform the following operations:

1. Provide the necessary details of all imported goods

2. Submit customs declaration form for customs processing

Once the statement is approved, it will change to “Pending Payment” status.

Note: Once the customs declaration form is sent to the FTA, the customs system will not allow any further editing of the form. The status of the claim form can only be changed to “Approved” or “Rejected”.

b. Obtain electronic guarantees (financial security)

Importers should obtain electronic guarantees from their banks. This process is:

Obtain an electronic guarantee from the bank, the value of which is equal to the value of the VAT payable

Obtain the reference number of the electronic guarantee

C. Create an e-service account on the FTA portal

Unregistered persons should create an electronic service account on the FTA portal to pay the value-added tax at the time of import. The registration process is as follows:

1. Register as a new user by entering your email ID and unique password

2. You will receive an email via the registered email ID, asking you to verify your email ID

3. After successfully verifying your email ID, your electronic service account will be created and you can log in to the FTA electronic service portal

d. Log in to the FTA portal and fill in the VAT import declaration form

Importers should log in to the FTA electronic service portal and submit the electronic guarantee number obtained from the bank. This electronic policy number must be submitted in the form of “VAT 301-Import Declaration Form” to pay VAT. Once the electronic guarantee number submission is processed, the customs clearance process can be completed.

In our article “The process of submitting an electronic guarantee in the FTA portal”, the steps to submit an electronic guarantee number in the FTA electronic service portal are explained in detail.

Therefore, the import VAT payment process for unregistered persons is different from that for registered persons. In certain import schemes, unregistered importers must obtain electronic guarantees from banks and submit them in the FTA electronic service portal.

STEPS TO SUBMIT E-GUARANTEE IN FTA PORTAL

In our previous article “The process of paying value-added tax through electronic deposits”, we learned about the import of goods by non-registered persons. We have learned about two ways that non-registered persons pay VAT:

a. Pay VAT when importing

b. Provide electronic guarantee

We also learned that non-registered persons should follow the procedures below to pay import value-added tax through electronic guarantees. In short, the process is as follows:

Prepare and submit a customs declaration form on the customs portal

b. The customs officer will verify the details of the customs declaration and approve it. Notification of approval will be sent to importer and FTA

c. Obtain an electronic guarantee from a bank, the value of which is equal to the value of the VAT payable

d. Importer must create an electronic service account

e. Log in to the FTA portal and make VAT payment

In this article, let us understand the steps that non-registrants should follow to submit electronic guarantees in the FTA portal.

Steps to submit electronic guarantees in the UAE FTA portal

Step 1: Log in to the FTA electronic service portal.

Step 2: Click the “VAT” tab, as shown below:

Bill shipped to UAE

Step 3: Click “VAT 301-Import Declaration Form for VAT Payments”.

Bill shipped to UAE

Step 4: Fill in the customs authority, customs number and date of customs declaration. Click Next.

Bill shipped to UAE

Step 5: The “About Statement” screen will open and the statement details (import date, destination, etc.) will be retrieved automatically. Click Next.

Step 6: The “Declaration Details” screen will open, and the declaration details [such as HS (Harmonized System) code, import value, tariff, CIF (cost, insurance and shipping) value, etc.) will be automatically retrieved. Click Next.

Step 7: Since the import scheme requires electronic guarantee, the “VAT Payment” screen will verify whether the electronic guarantee number can continue. Fill in the electronic guarantee number and click the “Verify Electronic Guarantee” button.

Step 8: After successfully processing the electronic guarantee submission, a confirmation message will appear on the screen, which provides the transaction ID and amount. In addition, you will receive an email confirmation confirming that the electronic guarantee has been successfully submitted. Thereafter, the customs clearance procedure can be completed.

Bill shipped to UAE

Therefore, FTA has carried out a simple process to submit electronic guarantees in the FTA portal. Under certain circumstances, unregistered persons who need to pay import value-added tax through an electronic guarantor should follow the above steps.

STEPS FOR NON-REGISTRATNTS TO PAY VAT ON IMPORT IN FTA PORTAL

In the previous article “The process of unregistered persons paying value-added tax on imported goods”, we learned about the situation of non-registered persons importing goods. We have learned two ways for non-registered persons to pay VAT:

a. Pay VAT when importing

b. Provide electronic assurance

We have also learned about the VAT payment procedures that non-registered persons should follow when importing. In short, the process is as follows:

a. Prepare and submit a customs declaration in the customs portal

b. The customs officer will verify the details of the customs declaration and approve it. Notification of approval will be sent to importer and FTA

C. Importer must create an electronic service account

d. Log in to the FTA portal and make VAT payment

In this article, let us understand the steps that non-registered persons should follow to pay VAT in the FTA portal.