- July 26, 2021
- Posted by: admin
- Category: Blog
A tax registration number is a specific number issued to an institution that has been VAT registered in the UAE by the FTA (Federal Tax Authority). This is a number of 15 digits through which the FTA would be able to distinguish you from others. Many people want to know how to find TRN number of company. Hence below we mentioned a quite few things that will help you to understand the TRN and certain vital aspects related with it.
Role of TRN Number of Company
TRN number plays a huge role in processing different Tax-related documents and permits companies to avail multiple tac advantages and claim different tax advantages. Since the value added tax (VAT) is a comparatively new tax which is being levied in the nation, VAT adherence is most crucial for a company.
TRN helps businesses to communicate easily with the clients, suppliers, and vendors in invoices processing which would need the TRN to be mentioned on all documents that are related to tax. This method of enhancing processing of TRN and invoice would certainly help companies to claim tax credit advantages for the taxes paid.
Since a TRN number UAE is the initial step to moving in the correct direction of VAT and adherence is most crucial in VAT implementing, even provision based TRN, a preliminary phase, is the very crucial step. The FTA (Federal Tax Authority) stated that it had issued already provisional TRN for tax groups and this would soon provide similar individual businesses.
Importance of TRN Number of Company
- The TRN number is a specific 15-digit number which is issued to companies on the registration of VAT.
- A TRN can make capable easy communication between the purchaser or supplier of services and goods when preparing a tax invoice or other documents related to tax.
- Getting a TRN can be profitable for an organization who looking to claim back the paid tax on the purchase of services and goods created by the businesses when processing the final goods.
- An individual that is tax registered can recover the paid VAT in some conditions like:
- In case the VAT is paid for the services like electricity and water for the commercial property, the tax could be refunded.
- A property developer could recover the VAT on all the cost of business.
- According to the UAE VAT law, a company should mention the TRN number UAE in all the documents that are related with tax like: Tax invoices that issued by the seller, a business’ tax credit notes, filling VAT returns for the company.
Verification of TRN number of Company
A TRN number of a company can be used to verify the VAT registration validity. A professional tax agent in Dubai, UAE can help an individual to verifying any details of a tax registered business in Dubai, UAE. Although, in order to use this services, an individual should be aware of TRN number verification in Dubai or in the UAE. This procedure assists and individual to have sure about the right TRN of the company before initiating the transaction or before generating the tax invoice for the concerned company. This tool was banned in starting, but the government currently permitted the people to verifying the TRN through third parties.
Benefits of TRN Number of Company
Apart from adherence, there are several advantages of having a TRN number, like:
- One of the very crucial advantages of having a TRN number is that it creates trust among the stakeholders and investors of a company.
- As per the Cabinet Decision No. 40 of 2017 on administrative fines of Tax rules in the United Arab Emirates, every business should require VAT registration and avail a TRN number to avoid any kind of penalties.
- The procedure of transaction and communication between the purchaser and the seller is more modernized using TRN number UAE.
- Any registered company would be qualified for a refund just after registration of VAT and claiming a valid TRN number.
With so many advantages of having a TRN number, registering for VAT for a company is very crucial and attractive.
Advantages of Hiring a Tax Consultant to Find a TRN Number of Company
- May have connection with FTA : A tax consultant can have a strong connection with the FTA (Federal Tax Authority), to obtain fast results when helping an individual to figure out a TRN number in the United Arab Emirates.
- Facilitates the VAT registration procedure : A tax consultants may help an eligible company or business to registration for VAT, by a simple process in the UAE.
- Assists in quickly getting the TRN : A TRN processed the VAT registration for a company. Although, delays can exist in getting the TRN number. A tax consultant looks to eliminate any kind of delays in getting the TRN number for a registered company or business.
- Help in the TRN verification : A tax consultant can offer amicable support with the TRN number verification procedure. This procedure makes sure that the company (Purchaser) paying VAT and the company (Seller) charging the VAT have a valid TRN number.
Also read, How To Apply For TRN Number In UAE