The TRN (Tax Registration Number) is a special number for individuals who are registered for value-added tax (VAT) in the UAE by the Federal Tax Authority. The implementation of VAT was an addition in the UAE taxation law implemented on 1st January 2018. Like explained in our previous posts the law required companies to be registered for charging VAT to their customers.
It’s a 15 digit identification number from which the federal tax authority will be able to differentiate businesses. The organization to which the number issued is called “Registrant”. Therefore, every organization should always mention this number in tax invoices, VAT returns, tax credits, etc.
The issued number gets automatically sent to you after the VAT registration application is approved. Thus, the companies or traders having TRN certificate are allowed to charge VAT to their customers. TRN utilizes the government to track all the transactions made by individuals or businesses.
Essential Criteria’s for VAT Registration
- The eligible organization must pay the collected tax from customers to the government. Similarly the organization must receive a refund from the government on tax paid by the organization to its suppliers.
- Businesses whose supplies and imports exceed AED 187,500 can register voluntarily for VAT.
- Businesses whose taxable supplies and imports exceed AED 375,000 must register and pay VAT.
- Foreign businesses can recover the VAT they paid while visiting the UAE.
How to Apply for VAT & TRN
The registering process for VAT and TRN number is similar:
- Login to your E-services and create an account through an online portal that is easy for individual and UAE government.
- After registering for VAT you must click on the button to get all the details regarding VAT in UAE.
- Complete the 8 sections of the VAT application with required details. Afterwards, “submit the details for approval” and when approved one would be registered for VAT in UAE and TRN number with certificate would be sent.
- There are a number of essential documents necessary to be registered for VAT in UAE. Which may vary depending on the nature of the business. However, the most common required documents are:
- The trade license copy of the business.
- The company’s address (including P.O box) and contact details.
- The owner’s contact details.
- The company’s memorandum of association with bank details and income statement for the past year.
- The partners’ or business owners’ passport copies, ID issued by the Emirates government.
How to verify TRN?
- Log in into E-services portal on the FTA website using the login credentials.
- Click on the “TRN verification” on the top corner to open up the verification page.
- Enter your TRN number in the search box and press enter. If the number is a verified one, then the resultwould show-up.
At the end, it’s essential to recognize the process of VAT has been made easy for the applicant and the government. All can happen with just one click.