Import of goods by agent on behalf of VAT registered persons
When the goods are purchased outside from UAE and when it comes to UAE is called Imports. VAT registered person imports as he is subject to vat in vat return rather than the time when the importation of goods is done. However, when the person is not registered for vat then he has to pay the vat before goods are released to him.
In some situations, the taxable person may appoint another company agent to imports the goods on its behalf. So, the vat registered importing agent will provide the TRN at the time of importation of goods the vat amount in box 6 of vat return of importing agent will be automatically populated.
The importer of goods will make negative adjustment in the box 7 of his return and the owner of the goods company will make positive amount in its box 7 of return. So, the owner of goods of company will be able to recover the vat on imports.
For the Record keeping purpose there should be written agreement between the importing agent and owner of goods company for making the adjustment in box 7 as per this article. And both companies should retain all the documents related to the imports. If there is no written agreement then the importing agent can give statement as per Article 50(7) of the Executive Regulations considered as tax invoice to the owner of goods company to recover input vat through the box no. 9 of vat return.