Importance of Tax Registration Number in Dubai, UAE

The new contribution to taxation is VAT in the UAE. After the completion of the VAT registration process, a TRN will be granted by the registrant the number is very crucial. Most people want to know the importance of tax registration numbers in Dubai, UAE. For all enterprises in the United Arab Emirates, a tax registration number is an unsaid law. Only after the registration for the VAT stage, this number will be available. If you are a business owner then you need to understand the VAT and TRN numbers, you can communicate with the Taskmaster professionals who will definitely guide you. Here we discuss more on the tax registration number in Dubai and its importance.

What is the Tax Registration Number in Dubai, UAE

A TRN is a unique 15-digit number that a unit receives after registering for Value Added Tax (VAT) in the United Arab Emirates. The tax registration number granted by the Federal Tax Authority is assisting the authorization to differentiate one VAT-registered firm from others. The unit to which the tax registration number is allowed is called a registrant according to the law of the VAT in the UAE, the registrant is compulsorily required to specify the tax registration number in several VAT-related documents.

Businesses receive their tax registration number when their application for VAT registration is sanctioned by the Federal Tax Authority. The TRN is granted by the Federal Tax Authority and it is sent to the registrant automatically once the VAT registration is completed in the UAE. After receiving the tax registration number, the firms or merchants can collect VAT from the customers.

Why Tax Registration Number in Dubai is Important

The tax registration number permits the recording of all the transactions done by businesses and individuals. In addition, the tax registration number facilitates seamless interaction between the buyer and the seller of commodities. The tax registration number is needed for the firms when they claim the tax-given businesses of commodities and services done by them. Below are the other main situations that make the tax registration number significant:

• The TRN registration in Dubai gives the registrant a unique identification.

• With the tax registration number on the tax invoice of the registrant, the customer would gladly pay the amount of VAT.

• With the tax registration number on the tax invoice, the registrar can avail of the VAT credit on the available purchases and other charges.

• For any conversation with the Federal Tax Authority, the registrant is needed to extract the tax registration number.

• The businesses should specify the tax registration number in VAT-related documents like tax invoices granted by the seller, tax credit notes, and VAT returns.

Apply for a Tax Registration Number in Dubai, UAE

If you want to apply for TRN in Dubai, then you need to follow the same process as the VAT registration process. Individuals eligible for the registration for VAT can take the help of skilled tax agents in Dubai to accomplish the procedure. An individual needed to register for tax in accordance with the terms of the Decree-law shall file an application for tax registration with the administration within 30 days from the date they need to register.

The following phases are required to get tax registration in Dubai –

• The taxable individual needed to log in to the e-services via the online portal of the Federal Tax Authority.

• Once the VAT registration is done, the taxable individuals have to click on the key and get all the details about the VAT in the United Arab Emirates.

• The UAE VAT has eight sections and the candidate must fill in the sections with the necessary information.

• In the last stage ‘present the information for approval’ and after approval, the individuals will be registered properly for VAT and the tax registration number will be sent along with a certificate.

The registrant needed to impose the applicability of the VAT on its businesses such as 5%, 0%, or specifically exempt prior to applying for the registration for VAT. As the activities required to be chosen properly at the time of registration and the special areas with 0% and discounts need to be implemented correctly.

Documents Required for Tax Registration in Dubai, UAE

The procedure of registration to get the tax registration in Dubai must be accompanied by the submission of necessary paperwork. To make sure the paperwork is complete in adherence to the regulations of the UAE.

• Copy of business license
• Company’s address and contact information
• Company owner’s contact details
• Memorandum of Association as well as income statements and bank details
• Copies of passport
• Turnover information letter
• Custom registration proof

Read More – How To Find TRN Number of Company