VAT Financial Guarantee Or Cash Deposit Release For Non Registered Importers User Guide VAT 702

VAT 702 - VAT Financial Guarantee Or Cash Deposit Release For Non Registered Importers User Guide

1. About this guide

This guide is prepared to help non-registered importers to submit a request to liquidate partially or completely an eGuarantee or refund partially or completely an eDirham deposit provided while importing goods under tax suspension.

2. About VAT 702

VAT 702 is a form provided by the Federal Tax Authority (“FTA”) pursuant to which a nonregistered importer notifies the FTA to either cancel or liquidate an eGuarantee or to refund or collect an eDirham deposit. In line with the relevant legal provisions, there would be specific scenarios where a non-registered importer would provide an eGuarantee or an eDirham deposit to clear goods at customs, which are subject to tax and duty suspension. Upon export of the goods, the importer is eligible for a refund or a return of the financial guarantee.

2.1. When should you submit a VAT 702?

  • You have provided an eGuarantee or eDirham deposit to FTA on the FTA eServices portal using VAT 301 while importing goods under tax suspension
  • You have completed the duty suspension claims process with the relevant customs authority
  • One business day has passed since the approval of your claim by customs
If the goods were imported under tax suspension …the Importer shall submit the duty claim to the relevant customs authority and…
and have been exported completely the VAT declaration will be updated automatically
and have been sold or used partially in the UAE applicable VAT will be deducted from deposit/eGuarantee for goods sold or used in the UAE on VAT 702
and have been sold or used completely in the UAE applicable VAT will be deducted from deposit/eGuarantee for goods sold or used in the UAE on VAT 702


2.2. Who should submit a VAT 702?

  • You are not registered with the FTA
  • You have imported goods under duty suspension regime after 1st January
  • have paid an eDirham deposit or provided an eGuarantee to the FTA upon import of goods
  • You have either exported the goods outside the UAE, sold, consumed, damaged or lost the goods while still under suspension in the UAE.


3. Accessing VAT 702

VAT 702 is available on the eServices portal in the respective (VAT) section.

VAT 702

For submitting a VAT 702 Form against a go to select VAT from the main menu and click on the ‘VAT 702’ button.

IMPORTANT: As part of VAT 702, under the applicable scenarios you are required to provide the bank account details or the eGuarantee number. Please ensure that this information is correct.

 

4. Completing VAT 702

1. Declaration Details
Declaration information

Please enter the information for the following fields:

  • Customs Authority
  • Declaration Date
  • Declaration Number

It is important that you enter the details accurately.

The declaration date should be the import declaration date and the declaration number should be the import declaration number

2. Claim Details
Claim information

Please review the details of the claims as received from the customs authority. This will some or all include the following fields:

  • Total VAT Paid
  • Amount to be Collected
  • Amount Eligible for Refund
  • Paid Using eGuarantee
  • Amount to be Cancelled from eGuarantee
  • Paid Through eDirham Deposit
  • Amount to be Refunded
  • Settled through Clearing Agent
  • Amount to be returned by Clearing Agent
  • Total Paid
  • Total Claimed

The fields that will be available will depend on the payment method used for settling your import declaration.

Amount you wish to claim back must be equal or less than the amount you have paid The total amount requested for refund must not exceed the amount eligible for refund, as per the records of the customs authority. Furthermore, the specific refund method requested must not exceed the initial amount paid using the same method.
3. Finish
Payment Summary The summary of the amount that will be deducted from your deposit/eGuarantee and the amount that will be refunded will be displayed.
Is your bank located in the UAE? IBAN BIC / SWIFT etc.

If you have made an eDirham deposit for the suspended declaration, you can be eligible for a refund to your bank.

IMPORTANT: You must ensure that your account details are accurate. Some accounts cannot receive payments electronically. We recommend that you check with your provider before submitting this form if you are unsure whether or not your bank has made this facility available to you.

Upload the IBAN validation letter Upload the letter issued and stamped by your bank which includes details about the account holder name (must be the same as the applicant’s name), bank’s name and the IBAN.

 

5. Next Steps

After completing the submission, the FTA will review your request and process it.

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