In the previous article, Steps to Submit an E-Warranty on the FTA Portal, we explained the process of submitting an E-Warranty on the FTA Portal. Once the e-warranty has been submitted and approved, the imported goods can clear customs. Import scenarios by non-registered parties that require electronic guarantees include:
a. Movement of goods from one designated VAT zone to another designated VAT zone.
BC Import of goods into UAE under customs duty suspension.
When an e-guarantee is needed for a UAE import, it usually means that, provided certain requirements are met, the importer won’t be responsible for paying import VAT. When the requirements are met, import VAT is not responsible; nevertheless, when the requirements are not met, the e-guarantee provides financial security for the payment of the applicable import VAT. If the requirements for import VAT waiver are met, the previously provided e-guarantee may be revoked.
Let’s examine how to use the FTA portal to withdraw an e-guarantee that has been submitted.
Step 1: Open the FTA portal and log in.
Step 2: As indicated below, click the VAT tab.
Step 3: Choose “E-Warranty – VAT Cancel Form 701”
Steps to cancel an e-warranty on the FTA portal
Step 4: Fill out the e-warranty cancellation form and enter the required information such as import declaration number, import declaration date, and e-warranty number.
Step 5: Click the “Submit” button after completing the form.
Step 6: Once you have successfully submitted the E-Warranty Cancellation Form, a confirmation message will appear on your screen indicating that your request was successful and you will receive a confirmation email.
Therefore, non-registered persons importing goods in certain cases are required to submit electronic guarantees for import into the UAE. Once the goods have cleared customs and the import VAT exemption conditions have been met, previously submitted e-guarantees can be canceled as described above.
You can also register for VAT Registration on our website:
https://www.vat-registration-uae.com/
