How to get Tax Registration Number (TRN) in the UAE?

The Federal Tax Authority (FTA), the regulatory body that oversees taxation in the United Arab Emirates, has established clear guidelines regarding VAT registration and obtaining a Tax Registration Number (TRN). This 15-digit unique identifier plays a vital role in the UAE tax regime and ensures tax compliance and transparency for businesses.

Hence, individuals starting a new business or expanding an existing one need to understand the significance and application of the TRN number UAE.

This guide provides a detailed overview of everything you need to know about TRN, its significance, documentation and eligibility requirements, and the registration and verification procedure.

What is a Tax Registration Number (TRN)?

A Tax Registration Number (TRN) is a unique identifier assigned to VAT-registered businesses in the UAE. With this identifier, UAE businesses can charge VAT on goods and services and claim input tax credits, and the tax authorities can monitor VAT-related transactions and ensure the business’s compliance with the tax regulations.

Importance of Tax Registration Number UAE

The Tax Registration Number (TRN) is vital for smooth operations and legal compliance of businesses in UAE. These are the key reasons explaining the significance of a TRN for businesses in the UAE:

• Legal Authorization to Charge VAT: TRN authorizes VAT-registered entities to collect VAT from customers. Moreover, including TRN on all tax invoices ensures transparency in the taxation process.
• Enables Input Tax Credit (ITC) Claims: Enables businesses to claim Input Tax Credit (ITC) on purchases and offset the VAT paid on inputs against the VAT collected on sales, thereby reducing the tax liability.
• Compliance with Tax Regulations: Helps businesses stay aligned with UAE tax laws and VAT regulations, ensuring that companies file accurate VAT returns on time and meet the FTA’s requirements.
• Transparency and Audit Readiness: Enhances the transparency of business transactions and encourages businesses to maintain proper records, making them audit-ready and reducing the risk of penalties.
• Prevention of Fraud and Misuse: Curbs VAT fraud, such as charging VAT without being registered, and protects businesses from fraudulent suppliers, ensuring proper VAT payments to FTA.
• Builds Trust with Customers and Suppliers: Demonstrates credibility and professionalism of the business, allowing customers and suppliers to confidently engage with them and receive valid tax invoices.
• Facilitates Government and Regulatory Approvals: Enables government entities and regulatory bodies to process various business applications, such as trade licenses or tender submissions, and companies to seamlessly participate in government projects and apply for business permits.
• Improves Financial Organization and Reporting: Promotes systematic record-keeping and better financial reporting practices within organizations, developing organised financial management systems.

Why Do You Need a TRN number UAE?

Businesses need a TRN number UAE for the following reasons:

• Legal Compliance: According to the UAE VAT law, all businesses with annual revenues exceeding AED 375,000 are required to register for value-added tax (VAT) and obtain a TRN, which would be included on all tax-related documents such as tax invoices, tax credit notes, and VAT returns.
• VAT Invoicing: Businesses must include the TRN while issuing VAT-compliant invoices to customers. Moreover, it ensures that the business adheres to VAT regulations and maintains accurate records.
• Tax Returns and Payments: Businesses can file their VAT returns with the TRN and make necessary tax payments to avoid penalties and ensure fulfillment of tax obligations.
• Claiming VAT Refunds: TRN number UAE helps businesses claim refunds on VAT paid on business expenses, which helps reduce overall tax liability and improve cash flow.
• Enhanced Credibility: A TRN enhances the overall credibility of the company with vendors, customers, and partners, and shows that the company is registered and compliant with UAE tax laws.
• Audits and Inspections: A TRN simplifies FTA audits and inspections, providing a clear record of tax transactions and compliance history.
• Cross-Border Transactions: A TRN facilitates smoother cross-border transactions for businesses engaged in international trade and ensures compliance with international tax regulations.

Eligibility for TRN Registration in UAE

Eligibility to register for a Tax Registration Number depends on the income and operations of the company. Here’s how the VAT law classifies TRN registration Dubai:

Mandatory Registration

• Revenue Threshold: For businesses earning over 375,000 AED annually or expecting to reach this threshold within the next 30 days.
• Compliance Requirement: Non-registration leads to penalties and cancels the right to VAT on sales.

Voluntary Registration

• Revenue Threshold: For businesses earning between 187,500 AED and 375,000 AED.
• Benefits: Allows small ventures to gain credibility and claim input tax credits.

Steps to Apply for a TRN number UAE

Here is a step-by-step guide to apply for a TRN number UAE:

Step 1: Create an Emaratax Account

Start the registration process by creating an account on the Emaratax portal with an email address and a secure password. Activate the account after receiving the verification email with instructions. This will provide access to the portal for further steps.

Step 2: Log in and access the online VAT Registration Form

Once the account is activated, log in with the registered email and password, and locate the VAT tab. Navigate to the ‘Register for VAT’ and select the ‘VAT Registration’ option to access the form.

Step 3: Complete the Registration Form

Provide detailed information about the business, including the trade license number, legal entity type, and contact details, in the registration form. Since it sets the foundation for the tax authority to review the application, fill in the form with accurate details to avoid any issues later in the process.

Step 4: Provide Owner Details

Input details about the business owners, including copies of passports and Emirates IDs, to help FTA verify their identities. For a smooth verification process, applicants must ensure to provide accurate and complete information.

Step 5: Upload Supporting Documents

Upload all required supporting documents, including a trade license copy, a certificate of incorporation, passport and Emirates ID copies of the owners, proof of business address, and accurate financial statements displaying the financial transaction values, to verify the business’s eligibility for VAT registration. Businesses involved in importing goods must ensure to include a customs registration number.

Step 6: Review and Submit the Application

Carefully review all the submitted information and documents for any errors or omissions. Once satisfied, submit the application form through the Emaratax portal and receive the acknowledgment email from the FTA.

Step 7: Await FTA Review

Upon successful submission, the FTA will review the submitted details and may even request additional details or clarifications if required. During this period, the applicant must ensure to monitor their email and Emaratax account for any communication from the FTA.

Step 8: Receive the TRN

Once the application is reviewed and approved, the authorities will share the Tax Registration Number (TRN) via email. The applicant can also find this number in their Emaratax account dashboard.

Required Documents for TRN Registration UAE

Businesses applying for a TRN number UAE must submit specific documents to the Federal Tax Authority (FTA), which include:

• Memorandum of Association (MoA): Defines the structure, operations, and ownership details of the company.
• Trade License: Proof of the legal authorisation of the company to operate in the UAE.
• Import or Export Declarations: For businesses involved in cross-border trade.
• Bank Account Details: Including the IBAN, to verify finances and facilitate tax payments and refunds.
• Turnover Declaration Letter: Confirming the annual turnover of the company.
• Company Contact Information: Authorized address, phone number, and email address.
• Emirates ID of Shareholders or Managers: Identification of individuals associated with the company.
• Passport Copies of Shareholders or Managers: Additional identity proof.
• Income Statement and Bank Details (Previous Year): Representing business performance and stability.
• Sample Invoices from Suppliers and Customers: Proof of business transactions, ensuring the VAT readiness of the company.
• Trade License: Proving the legal registration and authorization of the company to operate in the UAE.
• Certificate of Incorporation: Required for corporate entities to confirm the legal formation of the business.
• Proof of Business Address: Confirming the physical location of the business.
• Description of Business Activities: A detailed description of the business activities to help the FTA understand the nature of the business.
• Customs Number (if applicable): For companies involved in importing goods.

How to Verify the TRN number UAE?

The process of TRN verification Dubai includes the following steps:

• Visit the FTA Website: Go to the FTA’s official website, which helps manage and verify tax-related information in the UAE.
• Access the TRN Verification Tool: Go to the ‘VAT’ section and locate the ‘TRN Verification’ tool to check the validity of a TRN.
• Enter the TRN: Input the Tax Registration Number UAE correctly into the provided field.
• Complete the CAPTCHA: Complete the CAPTCHA verification to prove that the request is being made by a legitimate user.
• Submit and Review Results: Click on the ‘Verify’ button to get the verification status of the TRN. The system will confirm whether the TRN is valid and active or if there are any issues with it.
• Contact the FTA if needed: In case of any issues or discrepancies during the verification process, contact the FTA through the contact details provided on their website for assistance.

Conclusion

Having a TRN number UAE ensures that the business complies with VAT laws and enables seamless tax management. It not only streamlines business operations but also prevents fraud within organizations. Thus, by understanding the significance of TRN registration UAE, businesses can confidently navigate the VAT system, enhance credibility, avoid penalties, and contribute to a transparent, compliant economy.

Let Dubiz Help you Obtain your TRN number UAE

Dubiz is one of the leading tax consultants, with a team of professionals, including tax experts, VAT consultants, accountants, and business advisors, who are well-trained in simplifying tax matters and support businesses in completing their VAT obligations with precision and on time. We assist in preparing and gathering all necessary documents and ensuring that your application meets all requirements.

We also offer ongoing support for all kinds of VAT-related queries or concerns, helping you maintain compliance and manage your tax responsibilities effectively. With our personalized guidance and real-time assistance, we assist companies with their tax, finance, and all other aspects of their operations.

Get personalized guidance from Dubiz.

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