Do you know the difference between VAT and TRN? And you look further to register yourself as a taxpayer? Don’t worry; Shuraa Tax has your back. Like you, many entrepreneurs in Dubai and investors have no clue about getting a Tax Registration Number or TRN in Dubai. If you are running a foreign-owned business, you must understand the importance of value-added tax, VAT, and TRN.
In Dubai, for every business, the VAT Registration process is important for them. This means getting a TRN number. It’s a 15-digit code that shows you’re registered and helps tax authorities keep track of your finances through your invoices.
What’s TRN?
TRN is for Tax Registration Number. The UAE’s federal tax authority uses a 15-digit code, FTA, in short form. Each business gets one TRN number, even if it has different parts or branches.
Remember, if you have a TRN number, you must include all your invoices, documents, and financial activities, such as VAT Returns Filing, Tax Invoices, Tax Credit notes, etc. Only businesses with a TRN certificate can add VAT charges for their customers.
Who Can Get a TRN in the UAE?
If the business is operating in the UAE, they need to follow the rules and laws of the country. They need to follow the VAT regulations too. To be eligible for VAT registration and a Tax Registration Number (TRN) in the UAE, businesses must meet specific revenue criteria outlined below:
For Voluntary Registration
For voluntary registration, you need to follow the points mentioned below:
- You can choose whether to register for VAT if your earnings are between 187,000 AED and 375,000 AED.
- If your business makes over 187,500 AED, you can sign up for VAT and get a TRN.
- If you earn less than 187,500 AED, you don’t have to bother with VAT registration.
For Mandatory Registration
For Mandatory Registration, you need to follow the points mentioned below:
- You must get a TRN if your business earns about 375,000 AED.
- If you expect to earn this much in the next month or have earned it in the past year, you must register for VAT to avoid fines.
How can the validity of TRN in the UAE be checked?
To verify your TRN in the UAE:
- Go to the FTA website
- Log in to the e-service portal
- Click on “TRN Verification” at the top
- Enter your TRN and click “validate” to check its validity
Documents Needed for TRN Application
To get a TRN for your business in the UAE, you’ll need to submit specific documents to the relevant department. A trusted tax consultancy specialist like Shuraa Tax can help in this process, making sure your timely registration is done. Here’s a list of required documents:
- Company’s Memorandum of Association (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 suppliers and customers
Verifying Your TRN Number
Businesses and individuals in the UAE can now register and validate their TRN numbers through the Federal Tax Authority’s online platform. Alternatively, professional tax consultants like Shuraa Tax can assist with TRN number verification. To verify your TRN number in the UAE, follow these steps:
- Visit the FTA’s EmaraTax portal.
- Find and click on the “TRN Verification” option in the menu on the right side of the page.
- Enter your TRN number in the designated space.
- Type the code displayed in the image.
- Click “submit” to view your TRN verification status.
Steps to Apply for a Tax Registration Number (TRN) in the UAE
Below are the steps to apply for a TRN Number in the UAE:
- Check the FTA website and choose “Sign Up.”
- Fill in the details and sign-up form.
- Confirm your email to start registration.
- Log in to your e-service account.
- Click “Register for VAT” on your dashboard.
- Check the “Getting Started Guide” and confirm.
- Proceed and fill out the 8-section form for your TRN application.
Who Is Eligible to Get a TRN in the UAE?
Eligibility for a TRN in the UAE depends fully on your business activities and meeting specific financial criteria. Any business engaged in taxable activities should register for a TRN if its annual turnover exceeds the defined threshold.
How Long Does It Take to Get a TRN Certificate in the UAE?
It takes about 20 business days to process your application and receive your Tax Registration Number (TRN) upon approval. However, if the FTA requires additional information, the process may take longer.
Can I Register for VAT Using My Excise Tax Registration Number?
No, you cannot use your Excise Tax Registration Number to register for VAT. The Federal Tax Authority (FTA) will assign you a specific Tax Registration Number (TRN) for VAT purposes after reviewing and approving your registration. However, if you have already registered for Excise Tax, the process might be faster since some profile-related information could be prepopulated.
VAT Help in Dubai, UAE
Shuraa Tax is one of the leading tax consultants in Dubai. Their experts are well-trained in simplifying your company’s tax matters. Our team of professionals, including tax experts, VAT consultants, accountants, and business advisors, supports you every step of the way. With years of experience in their respective fields, they provide solutions to meet your business needs.
If you’re looking for VAT services in Dubai, we offer a wide range of solutions, including audit, accounting, VAT registration, and more. Contact us at +971508912062 or info@shuraatax.com.
