A TRN or Tax Registration Number is a unique identification number issued to a company when they register for VAT (Value Added Tax) in the UAE. This 15-digit number is issued by the Federal Tax Authority (FTA) only after they approve the VAT registration application. A TRN helps tax authorities to differentiate VAT-registered companies from others and is necessary if companies want to charge VAT to the customers. The Tax Registration Number enables the government to monitor and record all transactions carried out by businesses and individuals. Once the TRN is obtained, it is mandatory for the business to mention the TRN in VAT-related documents. For all VAT-related transactions in the UAE, businesses and individuals must have a Tax Registration Number. In UAE, businesses are not permitted to issue invoices to customers without a TRN. They must display the TRN on invoices, receipts and other such documents. When preparing a tax invoice, a TRN can also facilitate seamless communication between the supplier and purchaser of goods and services.
How to apply for Tax Registration Number (TRN) in UAE
Applying for a Tax Registration Number is an online process. Before applying for VAT registration, you need to create an e-Service account on the FTA website, which is a simple process. These are the steps to follow to obtain a TRN in UAE.
- To create an account, visit https://eservices.tax.gov.ae and click on “Sign Up”.
- Fill your details in the registration form.
- An email will be sent to your registered email address, requesting verification of your email.
- Confirm your email and then log in to your account with your credentials.
- Once you're logged in, click on “Register for VAT”.
- You'll be then navigated to the ‘Getting Started Guide'.
- Check the box “Click here to confirm you have read the getting started guide” and then click on “Proceed”.
- You need to furnish your details in the eight sections of the form to complete the VAT registration and obtain the TRN.
- You can track the registration process based on the colour indicators. The section in progress will be shown in brown colour and the completed ones will have a green tick mark.
- Click on ‘Submit for Approval’ once all the sections are completed.
Eligibility criteria to get a TRN in UAE
All businesses operating within the UAE must adhere to state laws, including VAT regulations. A company must fulfil certain revenue requirements to be eligible for VAT registration and Tax Registration Number in UAE. The requirements are as follows.
Voluntary Registration Requirements
- The voluntary threshold for VAT registration and TRN is AED 187,500
- Companies with revenue greater than 187,000 AED but less than 375,000 AED can choose to register for VAT.
- VAT registration is not required for companies with revenue less than AED 187,500
Mandatory Registration Requirements
- The mandatory TRN registration threshold is around 375,000 AED.
- If the company's revenue is expected to exceed the threshold in the upcoming month or has already exceeded it in the past 12 months, then the company must register for VAT to avoid penalties and fines.
Steps to Obtain a Tax Registration Number
To obtain a TRN number for your business in UAE, you need to submit the required documents to the relevant authorities. To make the process of getting a TRN number hassle-free and smooth, you can get professional help from reliable tax consultants in UAE. Kiltons Business Setup Services can assist you in your VAT registration process and get a TRN for your business.
- Memorandum of association of the company
- Trade license
- Import or export declarations
- Turnover declaration letter of the company as per FTA format
- Company Bank Account Details
- Company's address and contact details
- Passport/Emirates ID of manager/authorised person
- Owner’s valid UAE visa copy
- Bank account details
- Income statement
- Invoices from the suppliers and customers
Why is TRN important in the UAE?
A Tax Registration Number is a must for every company that is registered for tax purposes in the UAE, particularly for VAT. Here are some reasons why you need a TRN for your business in the UAE.
Legal reasons: If your taxable supplies and imports exceed AED 375,000 per year, it is mandatory for your business to register for VAT and obtain a TRN. You might face penalties and legal consequences if you fail to obtain a TRN.
Compliance: The Tax Registration Number (TRN) is an important part of the UAE's VAT system and is essential in ensuring compliance. Failure to comply with VAT regulations in the UAE might result in penalties.
VAT returns: Businesses are required to file VAT returns regularly on time. Tax authorities use TRN to identify the taxpayer when they submit VAT returns.
Claiming refund: You will be eligible for a VAT refund only if your business is registered for VAT and possesses a TRN number.
How to check the validity of Tax Registration Number
Checking the validity of your TRN is a simple process. You can do it online on the Federal Tax Authority website. Here are the steps to verify your TRN.
- Visit https://eservices.tax.gov.ae
- Log in with your credentials
- Go to “Getting Help”
- Click on “TRN Verification”
- Enter your TRN
- Type in the security code shown
- Click on “validate”
- If TRN is valid, a result will be displayed with the legal name of the business
VAT Consultants in UAE
Since registering for VAT and obtaining a TRN is crucial for your business, getting the help of a professional can streamline the process. If you provide incorrect information during the registration process, the submission will be rejected, and you will need to repeat the entire process. Kiltons Business Setup Services can assist you in your VAT registration process and obtain TRN for your business. With several years of experience and a deep understanding of UAE laws, Kiltons can ensure a seamless VAT registration process. Our experts will help you get a TRN on time and prevent any delay in registration. With our timely assistance and expert guidance, you can obtain a TRN for your business in the UAE effortlessly. Contact us today for VAT registration in the UAE
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