Understanding TRN and How to Obtain It in the UAE

In the United Arab Emirates (UAE), the Tax Registration Number (TRN) is a unique identifier issued to businesses and entities registered under the UAE’s Value Added Tax (VAT) system. Introduced in January 2018, VAT is a consumption tax levied on most goods and services at a standard rate of 5%. For businesses operating in the UAE, obtaining a TRN is essential for VAT compliance and participation in the tax system.

What is a TRN?

A TRN, or Tax Registration Number, is a unique 15-digit number assigned by the Federal Tax Authority (FTA) to businesses that register for VAT. This number is used to identify the business in all VAT-related transactions and communications with the FTA. Having a valid TRN is mandatory for businesses required to collects and remit VAT, and it is also essential for issuing VAT-compliant tax invoices.

Who Needs to Register for a TRN?

Businesses and entities operating in the UAE must register for a TRN if they meet certain criteria. These include:

Mandatory Registration: If the taxable supplies and imports of a business exceed AED 375,000 in the last 12 months or are expected to exceed this threshold in the next 30 days.

Voluntary Registration: Businesses with taxable supplies and imports exceeding AED 187,500 but below AED 375,000 can register voluntarily.

Exemptions: Some businesses may not be required to register, such as those dealing exclusively in VAT-exempt goods and services. However, they can still choose to register voluntarily if eligible.

Steps to Obtain a TRN in the UAE

Obtaining a TRN in the UAE involves registering with the Federal Tax Authority through its online portal. Below are the steps to follow:

Create an Account on the FTA Portal: Visit the FTA website and create an account by providing basic details, such as email and contact information.

Complete the VAT Registration Form: Log in to your FTA account and fill out the VAT registration form. You will need to provide:

• Business information, including trade license details and contact information.
• Details of business activities and financial records.
• Turnover figures to determine eligibility for VAT registration.

Upload Required Documents: Attach supporting documents, such as:

• Trade license copy.
• Passport and Emirates ID copies of the business owner or authorized signatory.
• Proof of business activity (e.g., contracts or invoices).
• Financial records showing turnover.
• Submit the Application: Review the application for accuracy and submit it. The FTA will review the application, and if everything is in order, a TRN will be issued.
• Receive the TRN: Once approved, the FTA will provide the TRN, which businesses must use on all VAT-related documents and transactions.

Benefits of Having a TRN

Legal Compliance: A TRN ensures that businesses comply with UAE tax laws and avoid penalties for non-registration.

Enhanced Credibility: Registered businesses are perceived as compliant and trustworthy, which can strengthen relationships with suppliers and customers.

Input VAT Recovery: Businesses with a TRN can claim input VAT on eligible purchases, reducing their overall tax burden.

Smooth Operations: A TRN facilitates seamless VAT invoicing, filing, and reporting.

Alpha Auditing and Accounting Firm: Your Guide to TRN Registration

Navigating the VAT registration process can be complex, but Alpha Auditing and Accounting Firm is here to help. With expertise in VAT consultancy and compliance, Alpha provides end-to-end assistance in obtaining a TRN in the UAE. From preparing the necessary documents to submitting the application, our team ensures a hassle-free experience for businesses.

Whether you are a startup registering for VAT for the first time or an established business looking to streamline compliance, Alpha Auditing and Accounting Firm offers tailored solutions to meet your needs. Contact us today to simplify your TRN registration and stay compliant with UAE tax regulations. GET your VAT cerificate now.