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 firstname.lastname@example.org.
AUTHENTIC ACCOUNTING: Tax specialist in Dubai provides supports at all the stages.