The VAT is the latest addition to the taxes in the UAE. It has been implemented from 1st January 2018. In the present state, it is of significant importance that a company is registered for VAT in UAE so that it can charge VAT to customers. After the VAT registration process is complete, the registrant will receive a TRN number. This number will only be available after the VAT registration process is completed. It is an unsaid rule that all companies in the UAE must have a TRN number. Let’s dig more in-depth as to what is a TRN and how can we receive it.
What is a Tax Registration Number (TRN)?
The Tax Registration Number (TRN) is a special number for individuals who are registered for value-added tax (VAT) in the UAE by the Federal Tax Authority. It is 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 a TRN certificate are allowed to charge VAT to their customers. TRN utilizes the government to track all the transactions made by individuals or businesses.
Importance of TRN in the United Arab Emirates
The Tax Registration Number is a distinctive number of 15 digits that are allotted to companies when they apply for VAT Registration in UAE. It enables better communication amongst the purchaser and supplier of services and goods when preparing any documents related to taxes. Gaining a TRN Number is beneficial for a company that is trying to get back the taxes paid on purchasing goods produced by the company while handling the final merchandise.
An individual with TRN Number Verification can recover paid VAT in situations like;
- 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 process of getting registered for Value Added Tax and getting Tax Registration Number are the same as TRN is issued by the Federal Tax Authority when an entity registers for VAT. You can check our blog on VAT Registration here for further clarity.
Documents Required for TRN Registration
To register for TRN and VAT, there are some of the documents that are needed to be scanned and uploaded to the FTA. The process for registration is an online process, and there is no need for any physical presence or any physical presentation of a document. Below is a list of the most common documents that need to be kept prepared during the registration.
- 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 registration for TRN and VAT. The number of documents may vary concerning the nature of the business.
TRN Verification in the UAE
A TRN number for a business can be used to confirm the reliability and validity of the VAT and TRN registration. In Dubai, a tax manager or consultant can help an individual in verifying any data of a tariff listed company that is in UAE. Though, to utilize services like these, an individual needs to be mindful of the TRN and VAT verification in Dubai, United Arab Emirates. Through this process, an individual gets enough help to know more about the right TRN before handling a transaction or arranging a tax statement for the company they are dealing with.
Advantages of Hiring a Consultant for TRN Verification
Initially, this tool was restricted, however, recently the government allowed citizens to verify TRN through 3rd parties. Below mentioned are some advantages of hiring a tax consultant or manager:
- Might have Connections with the Federal Tax Authority (FTA)
Consultants or tax managers have connections with organizations like the FTA, so accurate information can be obtained quickly.
- The Process of VAT registration is Facilitated
A tax consultant has the power to help eligible companies in registering for VAT, with a simple process.
- Assistance in Obtaining TRN
The TRN is processed when a company registers for VAT. However, it can be delayed in the process, therefore through a tax manager, you can get rid of delays and obtain your TRN on time.
- Assist in the Verification of VAT and TRN
Tax consultants and managers can provide assistance in the process of verifying TRN. The process makes sure that the company is paying VAT and that the corporation charging that VAT is legally registered.
- Assist in the De-Registering of TRN
This process is difficult, but with the help of a tax manager, the process can be simplified to provide quicker results.
Riz and Mona Consultancy
Due to the introduction of Value Added Tax, various inquiries regarding the tax system have risen. Therefore, it is advisable for businesses to not only apply for VAT but also to consult with experts to avoid any issues in the future. Since the methods of TRN and VAT registration and verification have changed, it is better to consult with experts for a smoother ride. In case you are looking for such a consultancy firm then Riz and Mona Consultancy can help you. Apart from helping you in the VAT registration, we also provide you with a range of services such as Audit Services, Tax Service, etc. To know more about the various services offered by us, do contact us – we would be glad to help.