VAT is the latest addition to UAE taxation. It has been implemented since the start of 2018. In the current state, it is vital that the company registers VAT in the UAE so that it can charge VAT to customers. After the registration process is completed, the registrant will receive the TRN number. This number is only available after the VAT registration process is completed. This is an unspoken rule that all companies in the UAE must have a TRN number. Let’s get a deeper understanding of what is TRN and how to obtain it.
Tax registration number (TRN)
The tax registration number (TRN) is a proprietary number issued by the UAE Federal Taxation Agency (FTA) to entities that have registered VAT in the UAE. This is a 15-digit number, through which the Federal Tax Office will be able to distinguish you from others. The entity that issues the tax number is called the “registrant” and should always mention this number in various documents set by the government (such as VAT returns, tax invoices, tax credits, etc.). After registering VAT in Dubai, the number will be automatically sent to you. You must mention TRN because it allows the government to track all transactions made by businesses or individuals. Only traders or companies that have obtained TRN certificates can charge customers VAT.
Procedure for TRN
When an entity registers VAT, the process of registering VAT and obtaining a tax registration number is the same as the TRN issued by the Federal Taxation Office. To register for VAT online, you need to perform some simple steps:
- Log in to your electronic service account
The VAT registration process has become an online process because it is easier for registered entities and the UAE government. First, you need to create an account on FTA’s online portal. For creating an account, you need to provide some details, such as email ID and password, after which you will receive login credentials.
- Click to register VAT
After logging into your account, a clickable button named “Register VAT” will appear on the screen. You need to click this button to bring up the VAT getting started guide. This guide will help you understand the VAT function of the UAE. After reading the complete guide, you need to tick “‘Click here to confirm that you have read the Getting Started Guide’, and then click” Continue “.
- Fill in the necessary details in the VAT registration form
After clicking “Continue”, the registration form will open in front of you. The form contains eight different sections where you need to fill in the necessary details. After filling in all the necessary details on one page, the portal will allow you to move to the next page. The progress of the registration process can be easily maintained because the completed page will be marked with a green checkmark. After filling out all the pages, you need to click “Submit Approval”. This will send the complete registration form to FTA, and FTA will carefully check the form and send you an approval email. After the approval, the entity is registered for value-added tax in the UAE and receives a VAT registration certificate with a TRN number. This number will be used to identify you and your business in various businesses.
To register for VAT, you need to scan some documents and upload them to FTA. The registration process is an online process and does not require any physical presence or physical presentation of any documents. The following lists the most common documents that need to be prepared during the registration process.
- A copy of the business license of the company,
- A copy of the passport of the partner or business owner,
- ID issued by the UAE government,
- Contact information of the owner, the company’s address (including post office box) and contact information,
- Company’s organization memo,
- Bank details
- Income statement for the past year.
These documents are required to register for VAT. The number of documents regarding the nature of the business may vary.
With the latest amendments to the law, registering VAT in the UAE is extremely important for companies, because, without registration, they will not be allowed to charge VAT to customers. It should also be considered that even a slight error in filling out the registration form will cause the form to be canceled and the company will have to start over. Therefore, companies should hire the services of a company to help you register for VAT, rather than handle it yourself.