The new contribution to taxation in the UAE is VAT. It was placed into action on 1 January 2018. It is of interest in the current state that a corporation is registered in the UAE for VAT in order to be eligible to charge VAT to consumers. After the VAT registration procedure is complete, a TRN number will be issued by the registrant. Only after the VAT registration phase is finished would this number be available. For all firms in the UAE must have a TRN number is an unsaid law. Let’s dive further into what a TRN is and how we should get it.
What is a Tax Registration Number (TRN)?
The Tax Identification Number (TRN) is a specific number for persons who are enrolled by the Federal Tax Authority in the UAE for Value-added Tax (VAT). It is a 15-digit registration number from which companies can be differentiated by the federal tax authorities. The name of the entity to whom the number is given is “Registrant.” Therefore, in tax invoices, VAT returns, tax credits, etc., any company should always note this number.
After the VAT registration application is accepted, the number given is automatically sent to you. Companies or merchants with a TRN certificate are also entitled to charge their consumers VAT. TRN uses the government to track all the purchases made by people or companies.
Importance of TRN in the United Arab Emirates
The Tax Registration Number is a 15-digit distinctive number which is issued to businesses as they apply for registration in the UAE for VAT. It facilitates greater contact between the customer and provider of services and products when planning some documentation related to taxes. For a corporation seeking to get back the taxes charged on the purchase of products manufactured by the company when processing the final merchandise, having a TRN number is useful.
A TRN Number Verification person may recover paying VAT in circumstances such as:
- If VAT has been paid for facilities like electricity and water for commercial use, then it can be repaid.
- VAT on business costs can be recovered by a buyer of assets.
According to the VAT law of UAE, a company needs to mention its TRN Verification related to all tax documents like;
- Tax invoices by the vendor
- Registering VAT earnings for a business
- An organization’s Tax credit records
- As per regulations, documents mandatory to identify TRN.
Procedure to Apply for TRN
The registration procedure for Value Added Tax and the issuance of the Tax Registration Number is the same as the TRN provided by the Federal Tax Authority when the VAT organization files. For more explanation, you may study our VAT Registration blog here.
Documents Required for TRN Registration
There are several records which need to be reviewed and submitted to the FTA in order to file for TRN and VAT. The registration process is an online process, and no personal appearance or other physical display of a paper is required. A list of the most common documentation that needs to be kept ready during registration is given below:
- Registered Email ID
- If the applicant is a company, copies of legal documents such as trade license, share certificates, Memorandum and Articles of Association etc.
- Passport copy and Emirates ID of owners/shareholders
- Copy of power of attorney, passport and Emirates ID of the manager/authorized person as well as the mobile number
- Turnover declaration letter containing sales figures from 2017 as per FTA format
- Supporting documents for the revenue
- Projected Future Revenues with supporting documents like confirmed purchase order
- Details of Bank Account including IBAN number
- The registered address of the company (Building name, office No, Street, P.O Box and Phone number)
- Customs Details will be required only if the Company deals in such kind of business
These documents are required for the registration for TRN and VAT. The number of documents may vary concerning the nature of the business.
TRN Verification in the UAE
To check the reliability and authenticity of the VAT and TRN registration, a TRN number for a company may be used. A tax manager or consultant in Dubai may assist a person in checking any tariff-listed company data that is in the UAE. However, a person needs to be aware of the TRN and VAT verification in Dubai, United Arab Emirates, in order to use services like these. Through this method, before managing a purchase or arranging a tax return for the business they are working with, a person gets enough support to know more about the correct TRN.
Advantages of Hiring a Consultant for TRN Verification
This resource was initially restricted, but the government recently allowed people to verify TRN by third parties. Some benefits of hiring a tax consultant or manager are listed below:
- Might have Connections with the Federal Tax Authority (FTA) – Consultants or tax managers have contacts with organisations like the FTA, therefore reliable reports can be accessed easily.
- The Process of VAT registration is Facilitated – A tax consultant has the ability, by a clear procedure, to help qualifying businesses to apply for VAT.
- Assistance in Obtaining TRN – When a business file for VAT, the TRN is processed. It may, however, be postponed in the process, so you can get rid of complications and collect your TRN on time with a tax manager.
- Assist in the Verification of VAT and TRN – In the course of TRN verification, tax advisors and administrators may provide assistance. The procedure guarantees that the organization pays VAT and that VAT is lawfully reported with the corporation charging it.
- Assist in the De-Registering of TRN – This process is complicated, but the process can be streamlined and produce faster outcomes with the aid of a tax manager.
Riz and Mona Consultancy
Various questions about the tax structure also expanded as a consequence of the implementation of Value Added Tax. It is also desirable for firms not only to request for VAT but also to work with experts to prevent any potential problems. Since the registration and verification processes of TRN and VAT have modified, it is best to communicate with experts for a smoother journey. If you are searching for such a consulting company, then you can be assisted by Riz and Mona Consultancy. We also provide you with a variety of resources, in addition to helping you apply for VAT, such as audit and assurance services, tax services, etc. Do contact us to know more about the different resources available to us – we will be happy to assist.