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.
In case goods imported under customs suspension scheme are 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
The goods lost or damaged after the import qualify as used, and the duty claim to the relevant customs authority and applicable VAT will be deducted from deposit/eGuarantee for such goods lost or damaged in the UAE on VAT 702
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