Share
Table of Contents
The United Arab Emirates (UAE) government, under the Federal Tax Authority (FTA), mandates that every legal person conducting business in the UAE must register for VAT if their annual income exceeds AED 375,000. Businesses with annual revenue over AED 187,500 can opt for voluntary registration. This online VAT registration process is carried out through the Emaratax portal.
Once registered, businesses receive a 15-digit Tax Registration Number (TRN), a unique identifier allowing them to fulfill their tax obligations and comply with UAE tax laws. The TRN serves as your VAT number, which the government, vendors, and customers use to recognize and identify your business.
If you are looking to learn more about TRN and what’s is used for, continue reading this blog post to find everything you need to know about TRNs and how they work in the UAE.
What is a Tax Registration Number (TRN)?
A Tax Registration Number (TRN) is a unique 15-digit identifier assigned to businesses and individuals who have registered for VAT in the United Arab Emirates (UAE). Issued by the Federal Tax Authority (FTA), the TRN is essential for fulfilling tax obligations and ensuring compliance with UAE VAT laws.
It serves as your VAT number, which the government, vendors, and customers use to recognize and identify your business in all tax-related matters. The TRN is required for issuing VAT invoices, tax credit notes, filing VAT returns, and claiming VAT refunds in the UAE.
Why Do You Need a TRN In UAE?
In the United Arab Emirates (UAE), getting a Tax Registration Number (TRN) is important for the following reasons:
Legal Compliance: The UAE government mandates that all businesses with annual revenues exceeding AED 375,000 must register for value-added tax (VAT) and obtain a TRN. Under UAE VAT Law, businesses are required to include their TRN on all tax-related documents such as tax invoice, tax credit note, and VAT return.
VAT Invoicing: A TRN is necessary for issuing VAT-compliant invoices to customers. This is crucial for maintaining accurate records and ensuring that your business adheres to VAT regulations.
Tax Returns and Payments: With a TRN, businesses can file their VAT returns and make necessary tax payments. This process helps avoid penalties and ensures that your business meets its tax obligations.
Claiming VAT Refunds: Businesses with a TRN can claim refunds on VAT paid on business expenses, reducing overall tax liability and improving cash flow.
Enhanced Credibility: Having a TRN enhances your business’s credibility with vendors, customers, and partners, as it signifies that your business is registered and compliant with UAE tax laws.
Audits and Inspections: A TRN simplifies the process of audits and inspections conducted by the Federal Tax Authority, as it provides a clear record of your tax transactions and compliance history.
Cross-Border Transactions: For businesses engaged in international trade, a TRN facilitates smoother cross-border transactions and compliance with international tax regulations.
Overall, obtaining a TRN Number is essential for businesses aiming to reclaim the tax paid on purchased goods and services and is equally a critical component for conducting legal business practices in the UAE.
How Does VAT Registration Work in the UAE?
VAT registration in the UAE involves several steps, starting with determining eligibility based on your business’s annual revenue. If your revenue exceeds AED 375,000, registration is mandatory, while businesses with revenue over AED 187,500 can opt for voluntary registration.
The registration process is completed online through the Emaratax portal, where you must provide essential information about your business, including trade licenses and financial records. Once registered, you will receive a 15-digit Tax Registration Number (TRN) from the Federal Tax Authority (FTA). This TRN is crucial for issuing VAT-compliant invoices, filing tax returns, and claiming VAT refunds.
It also ensures that your business complies with UAE tax regulations, enhancing its credibility with vendors and customers. Proper registration allows businesses to navigate tax obligations efficiently, avoiding penalties and ensuring smooth operations within the legal framework of the UAE.
Eligibility Criteria for VAT Registration and Getting TRN in UAE
In the United Arab Emirates (UAE), the eligibility criteria for VAT registration are primarily based on a business’s annual revenue. Here are the key criteria:
Mandatory Registration: Any business with an annual taxable supply and imports exceeding AED 375,000 is required to register for VAT. This threshold ensures that all significant businesses contribute to the VAT system.
Voluntary Registration: Businesses with annual taxable supplies and imports between AED 187,500 and AED 375,000 can choose to register for VAT voluntarily. This option is also available for businesses with annual expenses exceeding AED 187,500, regardless of their revenue. Voluntary registration enables businesses to reclaim VAT on their purchases and expenses.
Non-Resident Businesses: Non-resident businesses making taxable supplies in the UAE are required to register for VAT, regardless of the registration threshold. This rule ensures that all businesses contributing to the UAE economy are accounted for under the VAT system.
To register for VAT, businesses must apply by creating an e-service account on the Emaratax portal, providing necessary details such as trade licenses, financial records, and proof of revenue. Upon successful registration, businesses receive a 15-digit Tax Registration Number (TRN), which they must use for all VAT-related transactions, including issuing tax invoices, filing returns, and claiming refunds.
Important Documents To Obtain TRN in the UAE
To obtain a Tax Registration Number (TRN) in the UAE, businesses must provide several important documents during the VAT registration process. These documents help verify the business’s identity, financial status, and compliance with UAE regulations. Here are the key documents required:
Trade License: A copy of the business’s trade license, which proves that the business is legally registered and authorized to operate in the UAE.
Certificate of Incorporation: For corporate entities, a certificate of incorporation or equivalent document is needed to confirm the legal formation of the business.
Passport Copies: Copies of the passports of the business owners or partners involved in the business.
Emirates ID Copies: Copies of the Emirates IDs of the business owners or partners, if they are UAE residents.
Proof of Business Address: Documentation such as a utility bill, tenancy contract, or lease agreement to confirm the physical location of the business.
Bank Account Details: Bank account information, including the IBAN, to facilitate tax payments and refunds. When submitting your bank details, ensure your account is with a UAE-based bank and the account name matches your entity’s legal name. If your account is still being opened, include any relevant bank correspondence. Note that e-Dirham is the only default payment option on the form. Verify with your bank if they support electronic payment facilities.
Financial Records: Recent financial statements, including income statements and balance sheets, demonstrate the business’s annual revenue and expenses.
Contact Information: Details of the business’s contact person, including their name, phone number, and email address.
Description of Business Activities: A detailed description of the business activities conducted by the company, helps the FTA understand the nature of the business.
Customs Number (if applicable): If the business is involved in importing goods, a customs registration number may be required.
These documents are submitted through the Emaratax portal during the VAT registration process. Once reviewed and approved by the Federal Tax Authority (FTA), the business will receive a 15-digit TRN, enabling it to comply with VAT regulations in the UAE.
Steps to Apply for Tax Registration Number (TRN) in UAE
Applying for a Tax Registration Number (TRN) in the UAE involves several key steps. Here is a step-by-step guide on how to apply for a tax registration number in the UAE:
Step 1: Create an Emaratax Account
To start the VAT registration process in the UAE, you need to create an account on the Emaratax portal. Go to Emaratax and click on the registration option. Enter your email address and create a secure password. You will receive a verification email with instructions to activate your account. Follow these instructions to complete the activation and gain access to the portal for further steps.
Step 2: Login and Access the online VAT Registration Form
Once your Emaratax account is activated, log in using your registered email address and password. After logging in, navigate to the ‘Register for VAT’ section located under the ‘VAT’ tab. Select the ‘VAT Registration’ option to access the VAT registration form, which will guide you through the process of entering your business details and other necessary information.
Step 3: Complete the online VAT Registration Form
In the VAT registration form, provide detailed information about your business, including its trade license number, legal entity type, and contact details. This step is crucial as it sets the foundation for the Federal Tax Authority (FTA) to review your application. Ensure that all the business details filled in the sign-up form are accurate to avoid any issues later in the process.
Step 4: Provide Owner Details
You must also supply details about the business owners, including copies of their passports and Emirates IDs if they are UAE residents. This information helps the FTA verify the identity of the individuals responsible for the business. Accurate and complete information is essential for a smooth verification process.
Step 5: Upload Supporting Documents
Upload all required supporting documents to the Emaratax portal. This includes a copy of your trade license, a certificate of incorporation (for corporate entities), passport and Emirates ID copies of the owners, proof of business address, and accurate financial statements showing the actual or estimated financial transaction values. If applicable, include a customs registration number for businesses involved in importing goods. These documents are necessary for verifying your business’s eligibility for VAT registration.
Step 6: Review and Submit the Application
Carefully review all the information and documents you have entered and uploaded to ensure they are accurate and complete. Double-check all details for any errors or omissions. Once you are satisfied with the information, submit the application form through the Emaratax portal. An acknowledgment email from the FTA will confirm that your application has been received and is under review.
Step 7: Await FTA Review
After submitting your application, the FTA will review the provided information and documents. They may request additional details or clarifications if needed. During this period, it is important to monitor your email and Emaratax account for any communication from the FTA regarding your application status.
Step 8: Receive Your TRN
Once the FTA has reviewed and approved your application, you will receive your 15-digit Tax Registration Number (TRN) via email. You will also find this TRN in your Emaratax account dashboard. The TRN is essential for complying with VAT regulations, including issuing VAT-compliant invoices, filing VAT returns, and claiming VAT refunds.
How To Verify Your TRN in the UAE
To verify your Tax Registration Number (TRN) in the UAE, follow these steps:
Visit the Federal Tax Authority (FTA) Website: Go to the FTA’s official website at tax.gov.ae. This is the primary platform for managing and verifying tax-related information in the UAE.
Access the TRN Verification Tool: Navigate to the ‘VAT’ section on the FTA website and locate the ‘TRN Verification’ tool. This tool allows you to check the validity of a TRN.
Enter the TRN: Input the 15-digit Tax Registration Number you wish to verify into the provided field. Make sure to enter the number correctly to avoid errors.
Complete the CAPTCHA: If prompted, complete the CAPTCHA verification to prove you are not a robot. This step helps ensure that the request is being made by a legitimate user.
Submit and Review Results: Click on the ‘Verify’ button to process your request. The system will display the verification status of the TRN. You will see information confirming whether the TRN is valid and active or if there are any issues with it.
Contact the FTA if Needed: If you encounter any issues or discrepancies during the verification process, contact the FTA directly for assistance. You can reach them through the contact details provided on their website.
By completing these steps, you can effectively verify a TRN’s status and confirm its proper registration with the Federal Tax Authority. Alternatively, you may seek assistance from a professional tax agent to obtain and verify your TRN.
How Can We Help You Apply for TRN in UAE
At Tulpar Global Taxation, we are committed to making the TRN application process in the UAE as seamless as possible for your business. Our expert team provides personalized guidance through each step, ensuring you navigate the Emaratax portal and complete the registration form accurately. We assist in preparing and gathering all necessary documents, such as trade licenses, certificates of incorporation, and financial statements, to ensure your application meets all requirements.
We help fill out the application form with precision, minimizing the risk of errors and ensuring all information is correctly provided. Once your application is submitted, we manage the process and keep track of its progress. If the Federal Tax Authority (FTA) requires additional information, we handle the communication and provide any necessary documentation on your behalf.
After your TRN is issued, we verify its status to confirm that it is active and correctly registered. Additionally, we offer ongoing support for any VAT-related questions or issues that may arise, helping you maintain compliance and manage your VAT responsibilities effectively. By collaborating with Tulpar Global Taxation, you gain access to our specialized services in VAT consultancy, corporate tax, VAT return filing, and VAT refund processes.