TRN or Tax Registration Number is the unique identification number assigned to every VAT-registered person and/or business in the UAE. The TRN must be included in all VAT invoices by registered businesses on their supplies. A person or business in UAE can check the validity of TRN using the facility available on the FTA portal. For this, no registration or login is required.
TRN validity is crucial to verify that the supplier is a registered business. It is also beneficial for those businesses who want to claim credit on the input tax. Consumers can check the TRN validity of a dealer/retailer to ensure that they are eligible to charge VAT on supplies and stay away from fake TRNs. Here’s how to check the validity of a VAT TRN in the UAE.
Procedure to check the validity of TRN
The invoice/bill/receipt produced by the shopkeeper for a purchase must include the TRN along with the name and address of the business if there is a VAT amount mentioned in the bill.
TRN Verification UAE – Follow these steps to check if a TRN is valid/legit or not
Visit the FTA Portal (www.tax.gov.ae) and click on ‘TRN Verification’ option under ‘Getting help’ tab in the top menu.
Enter the TRN you want to validate in the field. Enter the captcha and click on validate button.
If the TRN is incorrect or invalid, you will see a message “TRN does not exist in the system”.
If the TRN is valid, the system will display the name and VAT number of the particular business (in English and Arabic).
VAT TRN validity is also important for businesses who want to confirm the authority of their suppliers while filing their VAT returns.
Use this tool to ensure that you are paying tax only on taxable supplies and only to VAT registered persons/businesses in the UAE. The tool can be used by both registered and unregistered persons.
Some businesses in the UAE have been reported to be using fake TRNs, without actually getting a VAT registration, to illegally make extra income without having to pay tax to the government.
Make sure to check and validate the TRN available on the invoice/bill to ensure not to pay unethical VAT. If a retailer is including VAT In the product/service cost, make sure to confirm their VAT registration by asking for and checking the TRN number.
Note: UAE businesses who have applied for the VAT but have not yet received their TRN cannot charge tax on their supplies without a TRN.