When conducting a business in the United Arab Emirates (UAE), one of the key terms which you will come across is Tax Registration Number (TRN). A TRN is a unique identifier, issued by the Federal Tax Authority (FTA), which is mandatory for businesses that fall under VAT registration criteria.
The number allows companies to legally collect VAT, file returns, and claim refunds, making it a vital element of financial operations.
Whether you are a new entrepreneur or an established company, understanding the basics of TRN is essential to ensure that the business stays compliant with local tax laws.
Since compliance is a crucial aspect of business operations in the UAE, knowing the importance of TRN helps in avoiding penalties and keeping the company on the right track. Read this blog to learn more about the tax registration number in UAE.
Back to topBrief Overview of Taxation in the UAE
The UAE introduced Value Added Tax (VAT) in 2018 at a standard rate of 5 percent. All businesses that meet a certain threshold (mandatory vs voluntary) must register for VAT and obtain a UAE tax registration number.
Companies that exceed AED 375,000 in taxable supplies and imports are required to register mandatorily while those above AED 187,500 may register voluntarily. Once registered, businesses receive a UAE TRN number that allows them to charge VAT on goods and services and claim input tax.
Read more: VAT Implementation in the UAE
Back to topWhat is a Tax Registration Number in UAE?
The tax registration number, also known as the VAT identification number or Tax Identification Number (TIN) in UAE, is a unique 15-digit identification code. It must be displayed on all tax invoices, VAT returns, and correspondence with the tax authorities.
Having a TRN number in UAE shows that the business is registered for VAT and compliant with tax regulations. Without it, you cannot legally collect VAT or claim tax refunds.
Back to topWhat is the Importance of TRN in UAE?
The need to understand the value of the UAE tax registration number goes beyond just compliance. Check out how it benefits your business:
- The TRN number links all your tax activities with the FTA, reducing errors and helping you stay compliant.
- Only businesses having a valid TRN number in UAE can charge VAT legally. It also helps in claiming VAT refund paid on business expenses.
- TRN invoices highlight that you follow UAE tax laws, boosting the credibility of the business. It helps secure contracts with clients and government bodies.
- The TRN is required for opening bank accounts or applying for licenses renewals, thereby helping avoid delays in completing important business processes.
- The tax registration number in UAE helps the business mitigate heavy fines.
Who Needs to Register for UAE TRN Number?
There are different cases where a business must or may register for a tax registration number in UAE:
- Corporate tax registration: Entities subject to corporate tax in UAE must register via EmaraTax to get a tax registration number.
- Mandatory VAT registration: Businesses whose taxable supplies and imports exceed AED 375,000 over the past 12 months or is expected to exceed it in the next 30 days must register for VAT in UAE and obtain a TRN.
- Voluntary VAT registration: If a company makes taxable supplies and imports or taxable expenses between AED 187,500 and AED 375,000, then they can opt for voluntary VAT registration.
Which Documents are Required for TRN Registration in UAE?
To apply for a tax registration number in UAE, businesses must submit certain documents to help the authorities verify identity and eligibility for VAT registration in UAE. The key documents generally required include:
- Address proof
- Copy of Emirates ID
- Bank account details
- Copy of a valid trade license
- Articles of Association (AoA)
- Memorandum of Association (MOA)
- Copy of financial statements
- Passport Copies of all shareholders
Depending on the chosen business type and activity, additional documents may be requested. It is important to prepare these documents carefully to avoid delays while obtaining the tax registration number in UAE.
Back to topWhat is the Process of Securing the UAE Tax Registration Number?
If you are ready to register for VAT, here is how Commitbiz can help in completing the application process and obtain the tax registration number in UAE:
Step 1 - Get in touch with tax consultants of Commitbiz.
Step 2 - Our team will assist in creating an account on the EmaraTax Portal.
Step 3 - Gather all the required documents and submit them to the tax consultants along with the completed application form.
Step 4 - We shall submit them to the FTA for them to proceed with document verification.
Step 5 - When approved, you shall receive the TRN certificate in UAE.
Back to topHow to Verify a TRN in UAE?
You can verify a tax registration number in UAE through the FTA’s official website. This is especially useful when dealing with suppliers, as it enables you to verify whether they are legally registered and eligible to collect VAT.
All you need to do is enter the TRN number in UAE in the VAT verification tool for the system to confirm its validity and business name.
Back to topWhat are the Consequences of not Having a TRN?
Failing to register for VAT and not obtaining a tax registration number in UAE when required can result in:
- Heavy fines and penalties
- Inability to issue valid tax invoices
- Legal restrictions on business activities
- Difficulty in entering formal business contracts
How Should Businesses Maintain UAE TRN?
After obtaining the UAE TRN number, businesses should take the following steps to ensure ongoing compliance:
- Update Business Information: Any changes to the company structure or address of the business setup in UAE must be reported and updated immediately.
- Use TRN in all Financial Transactions: Include the VAT number in UAE on all tax-related documents.
- Meet Filing Deadlines: It is essential to regularly file VAT returns and keep track of your tax obligations.
- Seek Expert Advice: If you are unsure about rules, consult a VAT expert or business setup advisor to avoid potential risks.
How Can Commitbiz Help?
Navigating the process of TRN registration in UAE can be complex, especially for new businesses. At Commitbiz, we simplify the entire journey by offering expert support tailored to your business needs.
Our team of tax consultants can guide you through each step of obtaining the tax registration number. From evaluating eligibility to preparing documents and submitting the application through the EmaraTax portal, we assist you with everything.
From providing ongoing assistance with VAT compliance, return filing, and regulatory updates to ensuring the business remains aligned with the latest FTA requirements, we handle everything efficiently. Contact us today to obtain the tax registration number in UAE!
Back to topCan freelancers or small businesses apply for TRN in UAE?
Yes, if their taxable supplies and imports or taxable expenses meets or exceeds the voluntary threshold.
How long does it take to get a TRN in UAE?
Typically, it takes 20 working days, depending on the document and application accuracy.
What is the validity of the tax registration number in UAE?
The TRN remains valid as long as your business continues to meet the VAT registration requirements and remains compliant with FTA regulations. It does not expire unless you cancel your VAT registration.
