TRN in the UAE is part of the payment system. It does not apply to all entrepreneurs, but only to those who have registered as a VAT payer, which is an analogue of VAT. According to the laws of the principality, all resident companies whose annual turnover of goods or services exceeded the amount of 375 thousand AED are required to become registered. To register, the applicant must collect a set of documents and submit an application to the UAE Federal Tax Authority (FTA).
International companies operating in the United Arab Emirates must also receive their own TRN number.
What is TRN?
TRN or tax registration number is a unique code that is issued to each registered enterprise (FTA). It provides each company with a 15-digit TRN identifier generated individually for each business. This code acts as a universal identification number confirming the legality of the company’s existence. Having it, the company has the right to apply for various tax certificates and a number of state-guaranteed benefits.
What questions are usually asked when getting a TRN in Dubai?
- How much sales do you plan to receive in the coming month?
- Do you intend to import any product categories? Will these be goods from the Persian Gulf or other regions?
- Do you intend to export goods to the countries of the Persian region or to other regions?
- If your plans include imports or exports to the Persian Gulf countries, what will be the approximate annual volume of supplies expressed in dirhams?
- Do you have a customs registration? If there is, then you need to specify its number, the registration certificate itself and the name of the emirate of registration.
- What are your expectations for the amount of VAT on outgoing payments? According to your assumptions, will they regularly exceed the amount of VAT on receipts?
- Do you expect turnover in product categories that are not subject to VAT?
Why do they check for TRN and how do they do it?
TRN is also known as the VAT payer’s registration number. Business owners are required to specify it when filling out:
- Tax invoices.
- Tax credit notes. If you need to adjust the invoice or refund the tax amount, you must specify your TRN in the credit notes. This will make accounting and control of tax transactions more accurate and transparent.
- VAT refund requests.
In addition, each company must disclose registration codes to customers upon request so that their TRN can be verified. The TRN check is necessary because it:
- ensures that the business is registered and legal, so the VAT charged to the customer reaches the UAE government;
- confirms that the company complies with all laws established by the UAE, not only in the field of taxation, but also in the social and cultural sphere;
- helps to recognize and identify fraudulent schemes;
- proves that the company successfully conducts transactions with legal clients and regularly submits VAT.
TRN verification is necessary before entering into any agreement with a company, firm or author from the UAE. You can do this on the official FTA website.
Frequently asked questions
When should a firm apply for a TRN?
As soon as the annual turnover of a commercial enterprise selling goods or services exceeds the threshold of 375 thousand AED, the company is obliged to issue a TRN by submitting an application and registering with the Federal Tax Service as a VAT payer. From the moment the established financial threshold is reached, the company will have 30 days to submit an application and receive the VAT payer’s code.
How do I register as a VAT payer?
You can get a registration number without waiting for the turnover to reach the limit of 375,000 dirhams. It is better to do this when the amount over the past year has exceeded half the value of 187,500 dirhams or its achievement is expected in the coming month. In this case, registration is not yet mandatory, but it can be done on a voluntary basis. This technique will help to avoid delays in the future.
Should a company receive a separate registration number for VAT purposes if it already has an excise code?
Yes, to pay excise duty and value added tax, you need to issue different registration codes. If there is a TRN for excise duty, the procedure for assigning a second number will be faster, since most of the information about the company is already available to the tax authority.
What requirements must be met in order to file an income declaration?
There are no special requirements. It is necessary to fill out a declaration, guided by invoices for incoming payments.
What information should be entered into the bank account details?
- client’s name;
- Account number;
- name of the bank;
- information about the bank branch;
- № IBAN;
- SWIFT code.
Can a UAE resident firm have more than one TRN?
No, it can’t.
What pitfalls can applicants face when applying for a TRN in the UAE?
The only point that should not be missed is the date of crossing the financial threshold: it is considered not the day of receipt of the invoice, but the day of its issuance.
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