What is Tax Registration Number (TRN), and why is it essential in taxation?

In 2018, the UAE’s Value Added Tax (VAT) was introduced. VAT is a considerable change to an area known as a tax-free country. Anyone whose business turnover exceeds AED 375 000 must register for VAT. A UAE voluntary VAT registration is available to those who have a turnover of more than AED 187,000.

Each registrant is issued a unique number by the Federal Tax Authority (FTA), known as a Tax Registration Number or TRN. Businesses unfamiliar with VAT in the UAE might be confused about the importance of TRN and the procedure to obtain it. This article will address “what is a TRN” and its importance concerning VAT in the UAE.

What is the Tax Register Number (TRN) in the Dubai, UAE?

The FTA issues a unique 15-digit number to an entity after registering for VAT in the UAE. The Authority uses the TRN to distinguish one VAT-registered entity from another, and the TRN is assigned to an entity called a Registrant. According to the UAE VAT Law, the registration must mention the TRN on all VAT-related documents.

When the FTA approves their UAE VAT registration, the TRN is issued to businesses. After completing UAE VAT registration, the FTA issues the TRN. The TRN is issued to traders or companies so that they can charge VAT to customers.

What is the significance of the Tax Registration Number in the UAE (TRN)?

TRN allows for the tracking of transactions by both individuals and businesses. The TRN allows for smooth communication between suppliers and buyers of goods. For companies to claim back tax on goods or services purchased, they will need the TRN. These are some of the primary reasons why the TRN is essential:

  1. TRN gives the registrant a unique identity
  2. Customers will be happy to pay the VAT amount with the TRN printed on the Tax Invoice of the registrant.
  3. The TRN on the Tax invoice allows the registrant to claim the VAT credit for eligible purchases and other expenses.
  4. FTA requires that registrants quote the TRN when contacting them.
  5. Businesses must mention the TRN on documents related to VAT, such as tax invoices issued by sellers, VAT returns, or tax credit notes.

How do I apply for a Tax Registration Number (TRN) in the UAE?

Both the registration for VAT and TRN numbers are identical. To complete the registration process for VAT, eligible persons can seek assistance from competent tax agents in Dubai. A person must register for Tax under the Decree-Law within 30 days. To obtain a TRN in UAE, follow these steps.

  1. To register, the taxable person must log in to the FTA’s online portal and access the e-services.
  2. Once you have completed the VAT registration, click the button to receive all information about VAT in UAE.
  3. The UAE VAT has eight sections. The applicant must fill in the sections with all the details.
  4. The final step is to submit the details for approval. Upon approval, the applicant will be registered for VAT. A TRN with a certificate would be sent.

Before applying for VAT registration, the registrant must assess whether VAT applies to its business. This includes whether it is 5%, 0%, or exempt. The activities must be selected appropriately, and the exempt and 0% fields must be applied correctly at registration.

Use to Register Group VAT

Group registration can benefit affiliated companies through joint shareholding and standard control. Group VAT registration is beneficial for intercompany transactions, and it will not include VAT and save you a lot of time. It is important to note that Group VAT registration has different requirements.

Business Address Amendments During Pandemic

Many businesses are upgrading their offices to take advantage of the rent cuts during the COVID-19 pandemic. They must update the TRN application contact information, and failure to do this could result in administrative penalties. FTA recommends that businesses amend their existing VAT registration to include the updated details and trade license. For more information, consult the top tax consultants in Dubai.

Documents Required to Get a Tax Registration Number in UAE

To obtain the TRN in UAE, you must submit all required documents as part of your registration. The best tax agents in Dubai, UAE, can help ensure compliance with regulations.

  1. Copy of the Trade License of the Company
  2. Contact details and address of the Company (include PO Box)
  3. Contact information for the owner of this Company
  4. Memorandum of association of the Company with bank details, income statement, and bank details for the previous year
  5. The format of the Authority’s turnover declaration letter is available here
  6. Passport Copies, Emirates IDs, and documents to prove authorized signatory.
  7. Custom registration, VAT in any GCC country details, and export or import declarations

It is important to note that late registration or incorrect information can result in penalties of AED 20,000 for late VAT registration.

How do I verify the UAE Tax Registration Number?

To verify the correctness of a person’s TRN, visit tax.gov.ae. Enter the TRN number into the search box and hit the enter key. If the number is verified, the result will show the legal name.

Tax agents in Dubai offer assistance with the tax registration number.

After registering for VAT in UAE, tax registrants receive a unique number called the Tax Registration Number (or TRN). TRN is mandatory for tax-related purposes, including filing tax returns and claiming back Tax on goods purchased. Taxpaying persons can get the TRN when they register for VAT in the UAE. This is where the expertise of eminent tax professionals in Dubai, such as Jitendra Chartered Accountants(JCA), comes in handy. JCA employs a group of highly qualified tax agents that can help companies navigate the VAT registration process in the UAE. This will allow them to obtain the TRN quickly.

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