UAE Tax Registration Number (TRN): VAT Registration, Requirements & Benefits

A Tax Registration Number (TRN) is a 15-digit unique identifier granted by the United Arab Emirates’ Federal Tax Authority (FTA) to registered businesses and individuals for tax purposes. The TRN is necessary to meet the United Arab Emirates’ tax requirements, such as value-added tax (VAT) and corporate tax. The TRN should be reflected on every tax invoice, VAT return, and other tax documentation to provide clarity and ease of tax compliance.

Significance of the Tax Registration Number (TRN)

The TRN plays multiple essential roles in the UAE tax regime:

Legal Compliance: Companies with turnover above the threshold of obligatory registration are bound to register for VAT and be issued a TRN to trade lawfully.

Collection and Payment of Tax: A TRN facilitates companies to charge VAT from clients and pay it to the FTA, effecting efficient tax collection.

Input Tax Recovery: Registered firms are able to recover the VAT they paid on goods and services they purchased and incurred, referred to as input tax, enabling cost control.

Transparency and Credibility: Printing a TRN on official papers increases the credibility of the company and shows compliance with taxation laws.

Enabling Cross-Border Operations: A TRN is usually necessary for customs and import/export procedures, expediting international trade operations.

Eligibility Rules for VAT Registration and TRN Acquisition

Companies need to evaluate their taxable turnover in order to calculate their requirement or qualification for VAT registration:

Compulsory Registration: Companies with a yearly taxable turnover of over AED 375,000 should register for VAT and get a TRN.

Voluntary Registration: Companies with a taxable turnover between AED 187,500 and AED 375,000 may register voluntarily. This is useful for SMEs and startups that want to boost their market credibility and reclaim input tax.

Exemptions: Companies with a taxable turnover of less than AED 187,500 are exempted from registering for VAT and do not qualify to get a TRN.

Step-by-Step Guide to Apply for a tax registration number uae

Acquiring a TRN is a step-by-step process via the FTA’s online portal:

Step 1: Register an Account on the FTA Portal Go to the FTA’s official website: https://tax.gov.ae.

Click on the “Sign Up” link to register a new e-Services account.

Enter the necessary information, such as your email address and a secure password.

Activate your email address by clicking on the confirmation link received in your inbox.

Step 2: Go to the VAT Registration Section Log in to your newly opened FTA e-Services account.

Go to the “VAT” section and choose “VAT Registration.”

Step 3: Fill out the VAT Registration Form The registration form is split into many parts that ask for extensive information:

About the Applicant: Fill in details like the name of the legal entity, trade license details, and business activities.

Contact Details: Give the physical address of the business, mailing address, and contact numbers.

Banking Details: Enter the account details of the business, including the IBAN.

Business Relationships: Reveal related parties or associated businesses.

Declaration: Ensure all information is accurate and accept the terms and conditions of the FTA.

Step 4: Upload Required Documents Append clear scanned copies of the required documents, which may include:

• Trade License
• Copies of passport and Emirates ID of the authorized signatory
• Proof of authorization of the authorized signatory
• Financial statements or other documents demonstrating the turnover
• Bank account verification letter or statement
• Step 5: Submit the Application
• Once the form is filled and documents are uploaded:

Verify all information typed for correctness.

Click on the “Submit” button to submit the application to the FTA for processing.

Step 6: Get the TRN After successful processing of your application, the FTA will send a TRN, which will be notified via email and retrievable through your FTA account.

Verifying a Tax Registration Number (TRN)

To verify the validity of a TRN, the FTA offers a verification tool:

Go to the FTA’s TRN verification page: https://eservices.tax.gov.ae/en-us/trn-verify

Click on the “TRN Verify” button.

Type in the TRN you want to verify.

The name of the registered entity will be shown if the TRN is valid.

This tool is especially helpful for companies to validate the TRNs of their customers and suppliers to ensure compliance in their transactions.

Responsibilities After Obtaining a TRN

After registering and having a TRN, companies have continuous responsibilities:

Charging VAT: Charge VAT at the current rate (5%) on all taxable supplies.

Issuing VAT-Compliant Invoices: Make sure that invoices contain the TRN and comply with the FTA’s invoicing standards.

Filing VAT Returns: File periodic VAT returns via the FTA portal, reporting output tax received and input tax paid

TRN Certificate in the UAE

A TRN Certificate is a formal document issued by the Federal Tax Authority (FTA) in the UAE upon VAT registration success. It contains the exclusive 15-digit TRN allocated to your business, indicating your VAT-registered status. The certificate is required for the issuance of VAT-compliant invoices, submission of tax returns, and claiming input tax. It also boosts your business reputation and guarantees UAE tax law compliance. With The VAT Consultant we can guide you through VAT registration UAE and secure your TRN Certificate promptly and effectively.