Starting a business in the United Arab Emirates is not an easy job. Setting up a business in the UAE involves several complicated government procedures. One of such mandatory requirements is obtaining a Tax Registration Number (TRN) for your company. This unique identification number helps the authorities to track your business activities for tax-related activities.
In this blog, Getting Your TRN Number in the UAE: A Simple Guide, the experts at Damaar, the top business setup consultants in Dubai will break down what a TRN is, why you need it, and how to get it step by step. Whether you’re a pro at running businesses or just starting out, this guide will help you understand everything you need to know about getting your TRN number in the UAE. So, let’s get started and get your business on the right track!
What is TRN?
A TRN number, which stands for Tax Registration Number, is a unique 15-digit number given by the Federal Tax Authority (FTA) in the UAE to distinguish one business from another. It’s issued once for each business, even if the company has different activities or branches.
If a business has a TRN number, it needs to include it on all invoices, documents, and financial transactions like VAT Return Filing, Tax Invoice, and Tax Credit notes. Only businesses with a TRN certificate are allowed to charge VAT to their customers.
How to apply for Tax Registration Number (TRN) in UAE
Getting a Tax Registration Number (TRN) in the UAE is done through an online process. Before applying for VAT registration, you must first create an e-Service account on the FTA website. Here are the steps you need to follow to acquire a TRN in the UAE according to our Business Setup Services in Dubai
- Visit https://eservices.tax.gov.ae and click on “Sign Up”.
- Fill the details in the registration form.
- An email will be sent to the email address you have registered with, asking for email verification.
- You have to Confirm your email and then log in to your account with the credentials.
- Click on “Register for VAT”.
- You’ll then be navigated to the ‘Getting Started Guide’.
- Tick the box labeled “Confirm that you’ve reviewed the getting started guide” and then proceed by clicking “Proceed.”
- You have to add your details in the eight sections of the form to complete the VAT registration and obtain the TRN.
- You can also track the registration process based on the color indicators. The section in progress will be shown in brown color and the completed ones will have a green tick mark.
- Complete by clicking on ‘Submit for Approval’.
Requirements for obtaining a Tax Registration Number (TRN) in the UAE.
Every business operating in the UAE is required to comply with state laws, which include VAT regulations. To obtain a Tax Registration Number (TRN) in the UAE, a company must meet specific revenue criteria. These requirements are outlined below.
Voluntary Registration Requirements
- The VAT registration threshold in the UAE is set at AED 187,500.
- Businesses with revenues exceeding AED 187,500 but not surpassing AED 375,000 have the option to register for VAT.
- Companies generating revenue below AED 187,500 are not required to undergo VAT registration.
Mandatory Registration Requirements
- The compulsory threshold for TRN registration is approximately AED 375,000.
- Suppose the company’s revenue is expected to exceed the threshold in the upcoming month or has already exceeded it in the past 12 months. In that case, the company must register for VAT to avoid penalties and fines.
Documents required to obtain TRN
Following are some documents that are required to get your TRN number for business.
- 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
Why is TRN important in the UAE?
A Tax Registration Number (TRN) is very much required for any company registered for tax purposes in the UAE, especially for VAT. Here are several reasons why having a TRN for your business in the UAE is important.
Legal Compliance: If your business’s taxable supplies and imports surpass AED 375,000 annually, VAT registration and obtaining a TRN are mandatory. Failure to do so could lead to penalties and legal repercussions.
Regulatory Compliance: The Tax Registration Number (TRN) plays a vital role in the UAE’s VAT system, ensuring compliance with tax regulations. Non-compliance with VAT regulations might result in fines.
VAT Returns: Businesses must consistently file VAT returns within specified deadlines. Tax authorities use the TRN to identify taxpayers during the submission of VAT returns.
Refund Eligibility: VAT refunds are only available to businesses registered for VAT with a valid TRN number.
How to verify the Tax Registration Number
To check the validity of your TRN number in UAE, you need to visit the FTA website. Follow the instructions.
- Log in to the FTA e-service portal
- Please select “TRN Verification” from the top menu.
- Fill out the TRN field and;
- Please click on the “Validate” option to verify the authenticity of your TRN number.
How long does it take to obtain a TRN certificate in the UAE?
Typically, it takes about 20 business days to get your Tax Registration Number (TRN) certificate in the UAE after your application gets approved. However, if the Federal Tax Authority (FTA) needs more information for Tax Registration, it might take longer to process your application thoroughly.
Why Choose Damaar?
When it comes to registering for VAT and obtaining a TRN, it’s essential to ensure accuracy to avoid rejection and unnecessary repetition. Damaar Business Setup consultant offers expert guidance, leveraging extensive experience and in-depth knowledge of UAE regulations. We specialize in streamlining the VAT registration process, drawing from years of experience and a comprehensive understanding of UAE laws. Choose us to navigate the complexities with confidence.