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.
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
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.
The eligible amount of refund
- In the case of 100% export of goods imported under customs suspension scheme
If the goods were imported under tax suspension and have been exported completely the Importer shall submit the duty claim to the relevant customs authority and the VAT declaration will be updated automatically.
- In case goods imported under customs, suspension scheme is used or sold partially
If the goods were imported under tax suspension and have been sold or used partially in the UAE the Importer shall submit the duty claim to the relevant customs authority and applicable VAT will be deducted from deposit/eGuarantee for goods sold or used in the UAE on VAT 702
- In case all the goods imported under customs suspension scheme are used or sold
If the goods were imported under tax suspension and have been sold or used completely in the UAE the Importer shall submit the duty claim to the relevant customs authority applicable VAT will be deducted from deposit/eGuarantee for goods sold or used in the UAE on VAT 702
VAT 702 is available on the eServices portal in the respective (VAT) section.
- For submitting a VAT 702 Form against a go-to select VAT from the main menu and click on the ‘VAT 702’ button:
Note: 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.
- 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
- 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
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.
- The summary of the amount that will be deducted from your deposit/eGuarantee and the amount that will be refunded will be displayed.
If you have made an eDirham deposit for the suspended declaration, you can be eligible for a refund to your bank. Note: 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.
- After completing the submission, the FTA will review your request and process it.
The entire contents of this article is solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation.. It doesn't constitute professional advice or a formal recommendation. The author has undertook utmost care to disseminate the true and correct view and doesn't accept liability for any errors or omissions. You are kindly requested to verify & confirm the updates from the genuine sources before acting on any of the information's provided herein above.