TRN (Tax Registration Number) In UAE

From Jan 1, 2018, the Value Added Tax (VAT) was introduced in the UAE. Also known as a consumption tax, in VAT, the values added by businesses at every point in the supply chain (manufacturer to consumer) are taxed.

A business pays VAT on its purchase of inputs and collects it on its sales, whether those sales are to another business or the final consumer. VAT is also applicable on the resale of goods.

In simple terms, the tax is collected only on the value added to the product.

What is Tax Registration Number (TRN) in VAT?

In the context of UAE VAT, a person whose annual turnover is more than AED 187,500 can apply for Voluntary registration and a person whose annual turnover is more than AED 375,000 must compulsorily register. The people who have registered for VAT will get a unique number by the authority which is known as TRN (Tax Registration Number).

A tax registration number is your VAT Number or VAT Registration Number via which the authority will identify you.

‘Registrant’ is the taxable person who has got VAT registration number. VAT Number in UAE is expected to be of 15 digits. The taxable person who got the VAT number must mention their VAT Registration Number in many different documents like- Tax Invoice, Tax Credit Note, VAT returns and even all the documents which are suggested by the UAE VAT LAW and Executive Regulations.

As per the laws in UAE, customers should pay VAT only if tax invoice includes the following details:

  • TRN number, name and address of the trader/business owner.
  • Sequential tax invoice number or the correct date of issue.
  • A very clear description of the goods or services supplied by the trader.
  • The invoice must mention the price per unit and the quantity of supply.
  • The invoice should very precisely mention the applicable rate of tax and the total amount that the customer has to pay.

Why is TRN important for VAT in UAE?

TRN is a unique identification number for business owners. The records of sales and purchase made by an individual or business owner can be easily mapped using TRN Number UAE. However, some traders in UAE are not including TRN number on their invoices and still charging VAT.

Those traders/ business owners who have not received the TRN certificate cannot charge VAT on their sale or service.

So it is important that customers are aware of the fact that unless and until businesses provide Tax Invoices with TRN number, customers should not pay VAT for the purchase made or services used.

TRN Number UAE – How to Do TRN Number Verification

To TRN Verification UAE, follow these steps:

verify the TAX Registration number (TRN)

Step 1: First log in to the FAT E-service Portal using your valid user-id and password to TRN Number Check UAE.
Step 2: Go on ‘TRN Verification‘ option.
Step 3: Enter the TRN Number in the search field.
Step 4: Click on the ‘Search’ button to view the result.

Method on how to link Tax Registration Number (TRN) with Dubai Customs?

To collect VAT on the imports of goods, the FTA and UAE Customs Departments are working together. All the businesses which are registered under VAT must give the TRN (Tax Registration Number) to the customs department in the process to clear the imported goods. The customs department will confirm the validity i.e. the last date of TRN (Tax Registration Number) in their system and if TRN is upgraded and found valid then permit the businesses to clear the imported goods without any premiere of VAT at customs.

In simple word, if TRN is connected with CRN (Customs Registration Code), then it permits to make the payment of VAT later i.e. while filing VAT Returns for that period and also allows the businesses to clear the imported goods without payment of VAT at customs.

Given below are the options for you too connect/link your TRN with CRN-

Option 1: Update Customs Registration Number in FTA Portal
Option 2: Update through Import Declaration Form
Option 3: Update through the Customs Department

Option 1: Update Customs Registration Number in FTA Portal

Through FTA Profile, you can update the CRN. Using your login credentials, login to FTA’s e-Service Portal and then update the CRN from: https://eservices.tax.gov.ae/en-us/

Option 2: Update through Import Declaration Form

The CRN will be updated in Customs System, after submitting the Import Declaration Form VAT301. Given below are the steps to complete the Import Declaration Form-
1. Using the username and password which is linked to your TRN, Login to the FTA’s e-services portal
2. Click on “VAT301 – Import Declaration Form for VAT Payment” from the VAT tab on FTA e-Services Portal
3. Mention the port of entry, customs declaration number, declaration date and then click ‘Fetch associated registration number’ to auto-populate the TRN number.
4. After completing the declaration process, submit the form.

By following these steps, the FTA will electronically update the customs declaration at the customs department and the VAT payment has been completed.

Option 3: Update through Customs Department

By using this option, you can give the TRN to the customs department office. By logging to the e-service portal, the customs officer will confirm the TRN. after the verification of TRN by the officer, then the customs department can upgrade your TRN on the customs department system.

For the people who are active in the frequent import of goods, the linking of TRN with CRN is the main key action for VAT registered businesses. Due to this, they can have a smoother and faster clearance of goods from the customs port and also helps in cash flow management.

Given below are few FAQs on VAT Registration Number to understand it better-

  • How to get a VAT Registration Number?

The VAT registration number will be issued after applying for VAT registration and successful verification.

  • Who will issue the VAT Registration Number?

After successful verification of registration application, the Federal Tax Authority will issue the VAT number.

  • How many digits does VAT Registration Number has?

VAT Registration Number is expected to have 15 digits.

  • If a taxable person wants to join a tax group, will a VAT number be issued to him?

Tax group can be joined using the VAT registration number which is with every registered person with FTA. If not, then he has to submit the VAT registration form and after submitting it, a TIN (Tax Identification Number) will be issued and using this, the person can join the tax group. A TIN is not a valid TRN, it is a number which is issued by the FTA for tax identification purposes only.

  • Is it necessary for the registrant to mention the VAT Number in VAT returns?

Yes, it is necessary for a registrant to mention the VAT Number in VAT returns because only with VAT Number, the authority can recognize the taxable person.

  • What all are the documents in which the Registrant must mention the VAT Number?

Following are the documents in which the Registrant must mention the VAT Number-

  1. VAT Return
  2. Tax Invoice
  3. Tax Credit Note
  4. All the documents which are suggested by the UAE VAT LAW

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