The UAE has been tax-free for long, and the imposition of VAT on goods and services is the recent inclusion in the whole spectrum. This tax is popularly known as Value Added Tax (VAT). The tax registration number (TRN) is the registration number allotted to a person who is registered for VAT in the country by the Federal Tax Authority. This tax was imposed in 2018; it is a 15 digit identification number from which the federal tax authority differentiates a person from the rest of the folks. A person must mention this number in various government documents such as tax invoices, VAT returns, tax credits, etc.
Tax registration in UAE allows the government to keep track of all transactions made by businesses or individuals. Only the entities (both Natural and Legal) having a TRN is liable to charge VAT from the customers.
Criteria for TRN Registration
A business owner has to pay the government the amount of taxes that he receives from its customers. A refund is also received from the government on the tax that has been paid to the suppliers. The registration of VAT is optional for all those businesses whose supplies and imports are more than AED 187,500 and less that AED 375,000/-per annum. It is mandatory for the business to register for VAT if its taxable supplies and imports exceed AED 375,000 per annum. The foreign businesses and investors will also recover the VAT that was paid by them upon visiting the UAE.
The Application Process for TRN
Login to your E-services Account
Open the portal of the federal tax authority and create your account for which you have to give the required information like email and password. After doing that, one receives the login information. In the UAE government, it is rather easy to register for VAT through an online portal.
The Step for Registration
After logging into the account, click on the button saying “register for VAT.” After clicking the button, one will be taken to a page displaying a VAT guide which would give all the information regarding VAT in UAE. Post, reading the guidelines thoroughly, click the checkbox that says “you conform to the guidelines,” and click on “proceed’.
Filling the Registration Form
A VAT application form will come up after clicking on “proceed’. The form consists of a total of 8 sections that have to be filled with the necessary details. The next page will appear after the completion of the first page. After filling up all the details, click on “Submit for Approval.” You will get an approval mail, and a TRN number with a VAT certificate would be sent. As per the regulation the FTA will issue TRN within 21 working days after submitting the complete registration.
Verification of the TRN Number
The following steps need to be followed for the verification of TRN Number
One has to log in on the E-services portal on the FTA website with the login credentials.
Click on “TRN verification,” and the verification page will open up.
Entering the TRN number in the search box will showcase the results for the TRN number.
Verification of the Tax Registration Number (TRN) is a simple process and has the potential to save a business from losses due to bad credit invoices.
Concluding the Scene
If you are in need of any assistance and support pertaining to the TRN registration, you can always contact us at email@example.com.
If you’re planning to start your business in the UAE region or running one already, you may be required to register for Value Added Tax (VAT). It is important for computation of taxes that your company is liable to pay to the government. Also, being registered under the VAT law implies that a business is recognized by the government as a supplier of Goods and Services and is sanctioned to collect VAT from their clients and pass on the same to the government. Only the businesses that are registered with
VAT are allowed to do the following:
Levy VAT on the supply of goods and services that is taxable
Get to claim Input Tax Credit for the VAT levied on their purchases, which will be subtracted from VAT liability on sales
Pay VAT collected from the clients to the government
Regular filing of VAT return
Registering for VAT is a fairly easy process but if you’ve been wondering how to register for vat in UAE, let us explain how!
Create an e-Service Account
Prior to proceeding with online registration of VAT, you have to generate an E-Service account with FTA. The entire process is quite similar to setting up an account with other online accounts such as Gmail, Yahoo, Hotmail, etc. To begin with, login to ‘https://eservices.tax.gov.ae’ and click on the Sign Up button that is on the right-side upper corner of the screen. Thereafter, you’re supposed to follow the below mentioned steps:
Once you click on Sign up, you’d be required to furnish several details such as your business’s e-mail Id, password, along with the security code and security question in the sign-up format.
After that you would get an email on your registered email ID. You would have to verify your account through your email address.
Once the account is verified, you can Log in to your account anytime you want using your credentials (User Name and password).
Register Your Business for VAT
Once you’ve created your online account with FTA, log in to it. Next, you’ll be directed toward a Guide on Getting Started. It is advisable to read up the guide which will further help you to get through the following steps quite conveniently. After this, start filling up the VAT registration form, which has different sections. You would be required to fill up all the information asked and finally submit it.
The entire process of VAT registration in UAE is needs to be done with at most care and caution. An erroneous/incomplete VAT registration will delay the entire certification process and at times businesses unable to move forward in business without VAT registration number. If you need any more information, get in touch with professionals who could help you out with it.
In case you need any assistance and support on Vat Registration in UAE, while doing the registration please contact us firstname.lastname@example.org.
A business can never be imagined without money. In the very definition of business, it is stated that it is any activity that is done with the objective of earning profit in monetary terms. When money is vital for any business, then it is a no-brainer to keep a proper track of its inflow and outflow. This tracking of money is known as accounting, and every company strives to maintain a proper accounting record. Accountants are hired, either full-time or on a contractual basis to constantly keep a check on the inflow and outflow patterns of the finances.
There are various advantages of having a sound accounting system for a company.
Monitoring the Money Movement
With proper accounting records, it is easier to track down where your money is going. This can help in keeping the spending in check and make you more accountable. If you are not monitoring the money, then it can be the case that you’re spending too much in one area and neglecting the other major aspects. By maintaining proper accounting records, it is possible to manage the expenses in a better way and spare money for the areas where it needs to be put-in the most.
The Time of Taxes
Payment of taxes is an integral part of the smooth running of any business. Any company in the country needs to be ready for the tax period. In UAE if you are not maintaining the accounting records of the business, all the things will be completely hay-way at the time of paying taxes. One might owe a lot of taxes, but he/ she might not be able to claim any tax savings due to the absence of financial records. Proper accounting records are of the utmost importance when it is time to pay taxes for any company.
There are various types of tax period under UAE VAT regulations and vat registrant comes under one of these tax periods.
The information regarding this is available for respective vat registrant in their VAT Registration Certificate/TRN Certificate and also on FTA Portal.
When you receive your VAT Registration Certificate on FTA Portal, one should look for the applicable tax periods. As compliance of the VAT Return and Payment of VAT is based on this Tax Period.
First tax period of the companies registered under UAE VAT could be ranging from a solitary month to five months and succeeding tax period would be either monthly or quarterly.
Giving the Standpoint
A company that is unaware of the financial picture because of accounting instability is called as an unorganized company. Finance is the parent element of any company, so an entrepreneur should know much about the money-matters as possible. Accounting and Bookkeeping has a big role to play in this whole scenario. Make sure to keep accounting records in the safest houses as it will help the company to stay organized, and the owner will be aware about the status of the company. It will also give an idea about what needs to be done to achieve the set goals.
Checking the Credibility for Loans
Borrowing money from banks and other financial institutions is part and parcel for any company. The lending institutions are always concerned with the repaying capacity of the company, and they can have an idea of the credibility of the firm by having a look at the accounting statement. If proper accounts are not maintained, then you will face a lot of difficulty in arranging for funds at the time of need.
The Concluding Part
Accounting is an integral part of any company, and it needs to be done just as attentively as any other job of a company.
If you are in need of any assistance and support on tax period, feel free to contact us email@example.com.