Innovation is driving the world forward, and many enterprises have already established their businesses in the UAE. As a business owner in the UAE, it is important to follow local tax laws. The UAE tax system has changed a lot in recent years. Since the introduction of Value Added Tax (VAT) in 2018, businesses must have a unique identifier called a Tax Identification Number Dubai.
This number helps the authorities keep track of your business for tax purposes. Without a TRN, your business could face fines, delays or even be unable to operate. That is why it is important to register for one.
If you are an entrepreneur unsure about how taxes work in the UAE, worry not. We have got the answers! In this blog, we will discuss what is TRN number and how to apply for tax identification number. So, let us begin!
What is a UAE Tax Identification Number?
Dealing with taxes can be tough, especially since compliance is mandatory, and even small mistakes can result in penalties. In the UAE, getting a Tax Registration Number (TRN) is more than just a formality.
It is a crucial requirement for businesses to legally operate under the Value Added Tax (VAT) system. Without a TRN, businesses cannot issue VAT invoices, claim tax refunds or meet the regulations set by the Federal Tax Authority (FTA).
A tax identification number Dubai is a special code given to businesses for identification purposes. To get this number, a company must first be legally registered. When you register for VAT, the Federal Tax Authority in the UAE will provide a 15-digit TRN that identifies your business. This number allows the FTA to track and manage taxable transactions more effectively and is also needed for various official documents.
The business receiving this number is called the “registrant”. Once registered for VAT, the TRN will be automatically assigned to you. However, applying for a TRN can feel overwhelming as many businesses face challenges with unclear eligibility rules, errors in the application process and complex documentation.
What documents are needed for TRN registration?
You need to submit several documents to relevant authorities for verification to apply for a TRN. This includes your registered email ID for portal access and key company documents like your trade license, articles of association and memorandum. Below is a list of additional documents typically required:
- Passport copy and Emirates ID of the owners or shareholders.
- Copy of the power of attorney, passport, and Emirates ID of the manager or authorized person, along with their mobile number.
- Company contact information and address.
- Company bank account details.
- Import or export documents (if applicable).
- Company turnover declaration letter.
- Supporting documents for your company’s revenue.
- Sample invoiced from suppliers and customers.
- Projected future revenue details with supporting documents like confirmed purchase orders.
How to apply for tax identification number in the UAE?
Applying for a UAE tax identification number is a straightforward process. All you need to do is follow these steps to complete your registration:
Prepare the necessary documents
Gather the required documents that we discussed in the blog above before starting your application.
Create an account on the FTA portal
Visit the UAE Federal Tax Authority website and create an account using your registered email ID. It will give you access to the online portal for submitting your application.
Complete the application form
Log into the FTA portal and fill out the TRN application form with your company’s details. Make sure to enter accurate information and upload the necessary documents as requested.
Submit the application
Once the form is complete, submit your application for review. Ensure all documents are correctly uploaded to avoid delays.
Wait for approval
The FTA will review your application and documents. If everything is in order, they will issue your TRN. This process may take a few days, depending on the workload.
Receive your TRN
You will receive your TRN after approval.
Conclusion
By following the steps discussed in this blog, you can successfully register for a TRN and ensure your business complies with UAE tax regulations. Working with a reliable and experienced audit, tax and management consulting in the UAE, like those at Asad Abbas & Co. (Chartered Accountants), can make the process easier and faster by ensuring your TRN is registered on time.
Contact us today to streamline your TRN registration and stay compliant with UAE tax laws!
Frequently Asked Questions (FAQs)
Q1- What is the structure of the Tax Registration Number?
Ans. A TRN is a unique identification number given to businesses, which makes it easy to distinguish one business from another. Each business has its own TRN. The UAE TRN consists of 15 digits, following a specific format: 100-xxxx-xxxx-xxxx.
Q2- Who needs a Tax Registration Number?
Ans. A TRN is required in the UAE for:
- Companies that import or export goods.
- Sole proprietors, limited companies and partnerships.
- Businesses that sell goods or services that are taxable.
- Both mainland and free zone businesses.
- Resident and non-resident companies.
Simply put, if your company is involved in selling products, services or transactions in the UAE, you must get a TRN. It is necessary no matter where your business is registered or located. Having a TRN allows you to properly file taxes with the government.
Q3- Why is the Tax Registration Number (TRN) important?
Ans. The TRN has brought important changes to how businesses operate in the UAE. It is important for the following reasons:
- Legal requirement: Businesses must include their TRN on all tax-related documents, like VAT returns and invoices to follow the UAE tax laws.
- Claiming tax refunds: Businesses registered for VAT can use their TRN to get refunds on VAT paid for purchases and help improve their cash flow.
- Business transparency: The TRN helps make business transactions clear and honest. It reduces the chances of tax evasion or fraud. By checking TRNs, businesses can be sure they are working with trusted companies.
- Tracking financial transactions: The government can track financial transactions using TRNs to ensure transparency and accountability.
- Reputation: Having a valid TRN boosts a business’s credibility. It shows customers and partners that the business is legally registered for VAT, which helps build trust.
