Are you looking into registering as a taxpayer but wondering how VAT and TRN work and how to apply for them? What will be the procedure and how does it work? One of the questions that are pressing Dubai entrepreneurs or investors is how they are going to go about obtaining a Tax Registration Number (TRN). Admittedly, there has been understandable confusion that came with the Value Added Tax (VAT) and TRN in UAE. Not everyone is familiar with VAT and Dubai tax system especially if the business is operated by a foreigner.
In accordance with Dubai laws, every business will have to register for VAT for which they need to obtain a TRN number. The TRN is basically a 15-digital number that helps segregates a registered business and sets it apart from others. It also shows companies’ financial status through all invoices that they issue during a certain period and helps tax authorities to differentiate the business.
Without further ado, dive into this content to learn everything you need to know about TRN in UAE:
What is TRN Number in UAE?
The Tax Registration Number (TRN) is a 15-digit number that is obtained after the registration of Value Added Tax of a company running in Dubai. VAT is a consumer-based tax. Whereas the TRN helps in differentiating a business from the rest. Every company operating in UAE must have to register for TRN and to obtain a Tax Registration Number in UAE so the tax authorities can recognize it when it comes to tax paying and VATs.
Who Is Eligible to Get TRN in UAE?
Every business running in UAE is required to comply with the state laws such as VAT and more. And, for a company to be eligible for VAT registration and Tax Registration Number in UAE, they will need to fulfill certain revenue requirements mentioned below:
- The voluntary threshold for VAT and TRN registration is 187,500 AED.
- Moreover, if a business’s revenue is above 187,000 AED but less than 375,000 AED then the company can also choose to register for VAT.
- In addition to that, if a business’s revenue is lower than 187,500 AED, then it doesn’t need to register for VAT.
The mandatory threshold for TRN registration is approximately AED 375,000 AED. Moreover, if the business’s revenue is expected to exceed in the next month or exceed in the past 12 months, then the company must mandatorily register for Value Added Tax to avoid hefty fines and penalties.
How to Verify a TRN Number in UAE?
Businesses and the general public can now be registered and verify the TRN number in UAE through the Federal Tax Authority portal available online. However, an expert tax consultant like Avyanco can also help you in this regard by assisting you with TRN number verification in UAE.
Here’s how you can verify your TRN number in Dubai:
- Visit the website of FTA in the United Arab Emirates
- Enter the TRN in the space provided
- A space will be shown where you will have to enter the security Code
- Tap on the ‘Validate” button
- The portal will display the Legal Name of the business as well as TRN if it is registered and valid
You can also contact Avyanco to assist you in this matter and make you understand the TRN number verification process.
Checking the Validity of Your TRN Number
In order to check the validity of your TRN number in UAE, you will have to visit the FTA website. Visit the site and;
- Log in to the FTA e-service portal
- Click on the “TRN Verification” located at the top of the page
- Fill out the TRN field and;
- Click on “validate” where you can check the validity of your TRN number.
Required Documents to Get TRN
In order to get a TRN number in UAE for your business, you need to provide the required documents to the concerned department. A trusted and experienced tax consultancy specialist like Avyanco can help you in getting the TRN number. We make the process simple and straightforward and ensure timely registration of your TRN. Below mentioned is the list of the documents that you may have to provide:
- Company’s MoA
- Company’s trade license
- Import or export declarations
- Company Bank Account Details
- Company’s turnover declaration letter
- Company’s contact details and address
- Emirates IDs of the shareholder/manager
- Passport copies of the shareholder/manager
- Last Year’s income statement and bank details
- Sample invoices from the suppliers and customers
Steps to Apply for a TRN Number in UAE
You can apply for online VAT registration and receive your TRN number in UAE with just a few steps as mentioned below:
- Visit the FTA website and click on the “Sign Up” option
- Fill in the sign-up form mentioned on the next tab
- An email will be sent to your email address to begin the registration
- Confirm your email and then log in to the e-service account
- Click on the “Register for VAT” in your dashboard
- Navigate the ‘Getting Started Guide
- Click on “confirm you have read the getting started guide”
- Click on “Proceed”
- Fill out the form containing 8 sections to apply for your TRN number
How Avyanco Helps You Get a TRN Number in UAE?
Avyanco is the leading and trusted business setup and tax consultancy service that aspires to help investors ensure compliance with UAE laws and grow businesses uninterruptedly. Team Avyanco consists of highly professional and experienced tax specialists, accountants and bookkeepers, auditors, and business experts who have hands-on experience in their respective fields making them the best fit for your organization.
We provide expert, up-to-date, and real-time assistance to companies related to various matters including tax, finance, business operations, and more as well as guide them on the future aspects of their businesses with respect to the UAE Laws and legal requirements as well. If you still have any queries feel free to contact us!
Jashvant Prajapati, founder and CEO of Avyanco Group of Companies; Business Setup Consultancy, Avyanco Tax and Accounting LLC, and Avyanco Auditing LLC. He keeps a varied portfolio with core expertise in investment management, corporate structuring, commercial law, business consultancy, lead management, business planning and market research. Aspire to help potential entrepreneurs and investors to come ahead and form their companies in highly emerging economies like UAE.