Dubai Custom and UAE VAT Update on Indirect Exports

On a report issued on 17 March 2021, new Export Mechanism in coordination with FTA is issued by Dubai Customs

Problem Faced by Traders in Dubai:

• Traders pay VAT when goods are imported into local market.
• These goods are then sold in local market to overseas buyers.
• Overseas Buyers’ arrange Export Agent to collect goods from different sellers and submits a single ‘Export’ Declaration. Export declaration has single Exporter Business Code and Name.
• Exporter arranges with original Importer to provide Exit Certificate upon Export for purpose of VAT Refund. Export declaration does not mention each original Importer names. This results in non-approval of VAT Refund to original Importer by FTA even after submitting details of Export Declaration and Exit Certificate.
• FTA is unable to refund VAT in the absence of Importer Name and Import Declaration details between original Imports and subsequent Exports.

What is the new system?

• A new Service called “Export Verification Report” will be introduced on 26th March 2021 by Dubai Customs on Dubai Trade Portal for VAT refund against the Cleared Export Declaration for the maximum period of 3months.
• Customs Bureau Officers, FTA users, Importers and Authorized Customs Brokers can generate “Export Verification Report” if the Exporter has mentioned valid M2 Import Declaration No. in Export Declaration and Importer has a Tax Registration Number [TRN].
• Provide an option in Export Declaration to mention valid M2 original Import Declaration No. as a reference [Previous Declaration Number]. VAT refund can be claimed only if Previous Declaration Number is provided in the Export Declaration
• Importers and Authorized Customs Brokers can login to Dubai Trade Portal:
  • “Generate VAT Export Report”
  • “Search VAT Export Report”, View and Download the existing reports
• FTA and Customs Bureau Officer can generate Consolidated “Export Verification Report” of all importers under single Tax Registration Number [TRN] which is associated with multiple Business codes.

For more information on these services, please contact us: