1. What is a TINCO?
TINCO or C/O TRN is a special reference number that is allotted to a VAT clearing company who register with Federal tax authority (FTA). In case of suspension arrangements e.g., temporary admission, usually importer is required to provide a financial guarantee to FTA to benefit from the VAT exception. When an import is facilitated by a clearing agent who has a TINCO registration, the TINCO holder can use its own guarantee with the FTA and ask the importer for a financial guarantee or cash deposit which will be refunded once the goods leave the UAE.
2. Who should register for TINCO?
Companies that are registered for VAT or are a member of a registered tax group can apply for TINCO registration. The VAT clearing company needs to submit a registration application with FTA for getting the TINCO account. One of the steps involves entering into a tax services agreement with FTA. During the registration process, the VAT clearing company will be required to provide a guarantee amount to the FTA.
3. What are the key advantages which can be availed by a company registered for TINCO?
With a TINCO registration, the clearing company can do below:
o It can facilitate the imports for non-registered persons and facilitate the import of goods under suspension arrangements.
o It can avail suspension of the VAT up to the value of the guarantee amount held by FTA due on the VAT goods that will be imported on behalf of their clients
o The suspended VAT amount will be released once the goods have been exported
o It can, on behalf of the importer, declare the VAT goods that are consumed in the UAE and pay the VAT applicable on the consumed quantities.
4. Who can submit the application to FTA?
The application can be submitted to FTA by a VAT registrant/active member of tax group, their tax agent or legal representative.
5. What is the estimated time to complete application review by the FTA?
We review the application within 20 business days from the date of receiving a completed application. However, in such case where additional information is requested, the applicant needs to provide such additional information within 60 calendar days and resubmit the application. Upon receiving the updated application with additional information, we may take further 20 business days to respond. If the application is not resubmitted within 60 calendar days from the date the applicant received the notification from us, the application will be rejected automatically.
6. What should I expect after I submit my TINCO registration application?
1. Processing your application:
a) Your application will now be reviewed by us. If we require any further details from you in order to assist with the verification of your application, you will receive an email notification setting out the information required from you.
b) Application submitted first instance (Pre-Approval Stage):
a) Once we have completed our review, we will either pre-approve, or in some cases, may have to reject the application. We will notify you by email of our review or decision.
a) Where we pre-approve an application, you will be informed on the amount of the financial guarantee that you need to provide. Please refer to the details below on how to submit the financial guarantee.
b) Where we reject an application, we will provide you with the reasons for doing so. You may re-apply but only once you have resolved the matters brought to your attention.
c) Application review post financial guarantee submission:
a) Once we have completed our final review, we will either approve, or in some cases, may have to reject the application. We will notify you by email of our decision.
b) Where we reject an application, we will provide you with the reasons for doing so. You may re-apply but only once you have resolved the matters brought to your attention.
2. Providing a financial guarantee:
a) During the registration process, you will be required to provide a financial guarantee issued by banks or other financial institutions in the UAE. We will determine the value of the financial guarantee to be provided and maintained by you. We will notify you by email and SMS with details of the value of the financial guarantee.
b) Follow these steps in order to provide the financial guarantee:
a) Visit your bank or any other financial institution in the UAE that provides a financial guarantee. Get a financial guarantee issued in favor of “Federal Tax Authority” for the amount requested. Please note that the financial guarantee must be valid for 12 months, auto renewable and should state that it is for the purpose of clearing VAT on behalf of non-registered importers.
b) Upload a scanned copy of the financial guarantee with relevant details in your registration application and submit.
c) Please note that the financial guarantee is required to be submitted in original at FTA office by scheduling an appointment with FTA representative. The person delivering the financial guarantee must also hold a letter of undertaking issued by the authorized signatory of the applicant verifying the details of person.
3. Tax services agreement and addendum:
a) One of the steps involved in the TINCO registration is entering into a Tax Services Agreement with us. We will notify you by email and SMS. Accordingly, you are required to visit the FTA office in person with the filled in Tax Services Agreement and the Addendum in order to be signed by us. You need to bring two original copies of the Tax Services Agreement and Addendum
4. Scheduling an appointment with FTA representative
a) Please note that the Financial Guarantee, Tax services Agreement and Addendum is required to be submitted in original at FTA Office by scheduling an appointment with FTA representative. Applicant can schedule a meeting by emailing Freight Forwarders “Freight.Forwarders@tax.gov.ae”
5. TINCO registration completion:
a) Following approval of your TINCO registration application you will receive your TINCO number via email. Your company name and contact details then will be published in FTA website (www.tax.gov.ae ).
7. How to check the status of the submitted application with the FTA?
The application status can be viewed on your dashboard in your EmaraTax account. The following provides a summary of the application statuses:
• Drafted: You have not completed or submitted the application form
• In Review: Your application form has been received by FTA and is under processing
• Awaiting Information: You need to provide additional information to FTA
• Rejected: Your application form has been rejected by FTA
• Pre-approved: Your application form has been reviewed by FTA and awaiting the original Financial Guarantee, Tax Services Agreement and Addendum submission to approve the application
• Approved: Your application form has been approved by FTA and your tax records have been successfully updated