Obtaining a Tax Registration Number (TRN) in the UAE

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October 7, 2023

Tax registration

Confused about the Tax Registration Number (TRN) in the UAE and how it relates to Value Added Tax (VAT)? You’re not alone! Many Dubai entrepreneurs and investors are grappling with these concepts, especially if they’re foreign business owners. Let’s shed some light on the TRN in the UAE:

What is a TRN number in the UAE?

Companies receive a 15-digit Tax Registration Number (TRN) after registering for VAT in Dubai. VAT is consumer-based, and the TRN distinguishes your business, helping tax authorities identify your tax obligations and VAT payments.

Who is eligible for a TRN in the UAE?

Every business in the UAE must comply with VAT regulations. To qualify for VAT registration and obtain a TRN in the UAE, businesses must meet specific revenue criteria

  • Voluntary Registration: If your revenue exceeds AED 187,500, you can voluntarily register for VAT. Even if your income is above AED 187,000 but less than AED 375,000, registration is an option.
  • Mandatory Registration: If your revenue surpasses approximately AED 375,000 within the past 12 months or is expected to in the future, VAT registration becomes mandatory to avoid penalties.

How Do I Verify a TRN Number in the UAE?

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How Do I Verify a TRN Number in the UAE?

Businesses and the public can register and verify TRN numbers through the Federal Tax Authority (FTA) portal online. Alternatively, expert tax consultants like Nexswitch Corporate Services Provider can assist with TRN verification. Here’s how to verify your TRN:

  1. Visit the FTA website in the UAE.
  2. Enter your TRN and the security code.
  3. Click “Validate.”
  4. The portal displays your business’s legal name and TRN if registered and valid.
Why a Tax Registration Number (TRN) in the UAE is Vital

The significance of a Tax Registration Number (TRN) in the UAE cannot be overstated, especially for businesses registered for VAT. Here are compelling reasons why your UAE-based business needs a TRN:

  1. Legal Requirement:
    If your annual taxable supplies and imports exceed AED 375,000, obtaining a TRN is mandatory. Failure to do so can lead to penalties and legal repercussions.
  2. Ensuring Compliance:
    The TRN plays a pivotal role in the UAE’s VAT system, ensuring businesses’ adherence to tax regulations. Non-compliance with VAT rules may result in penalties.
  3. Facilitating VAT Returns:
    Businesses must consistently and punctually file VAT returns. Tax authorities rely on the TRN to identify taxpayers when processing VAT returns.
  4. Unlocking VAT Refunds:
    Only businesses registered for VAT and equipped with a TRN are eligible for VAT refunds.

In summary, a TRN is not just a number; it’s a critical element in complying with UAE tax laws and enjoying the benefits of the VAT system.

Checking TRN validity

To check the validity of your TRN, log in to the FTA e-service portal, click “TRN Verification” at the top, fill in the TRN field, and click “Validate.”

Verification
Required Documents for TRN

To obtain a TRN in the UAE, you’ll need specific documents, which can be facilitated by trusted tax consultants like Nexswitch Corporate Services Provider. Required documents may include:

  • Memorandum of Association (MoA)
  • Trade license
  • Import/export declarations
  • Company bank account details
  • Turnover declaration letter
  • Contact details and address
  • Emirates IDs and passport copies of shareholders and managers
  • Last year’s income statement and bank details
  • Sample invoices from suppliers and customers
Steps to Apply for a TRN Number in the UAE

Applying for a TRN is a straightforward process. Here are the steps:

  1. Visit the FTA website and sign up.
  2. Complete the sign-up form and confirm your email.
  3. Log in to your e-service account.
  4. Click “Register for VAT” on your dashboard.
  5. Follow the “Getting Started Guide.”
  6. Fill out the 8-section form to apply for your TRN.

Get your TRN and ensure compliance with VAT regulations in the UAE!

How can Nexswitch help you?

Nexswitch streamlines your VAT registration and TRN acquisition in the UAE. Count on Nexswitch for a smooth VAT registration process, timely TRN procurement, and expert guidance, ensuring effortless compliance for your business in the UAE. Contact us today for TRN registration.

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