How To Verify TRN (Tax Registration Number) In UAE

After successfully getting registered with Federal Tax Authority in the UAE, a TRN registration Dubai number is granted. This is a different recognition number distributed to every VAT registered individual or corporation in the country. The registered businesses must specify the TRN (Tax Registration Number) in the VAT invoices on their respective supplies. An individual who is registered for VAT can check the validation of their TRN number through the FTA official website.

The validation of the TRN number makes sure that the business is registered. This also provides the ventures the possibility to ask for credit on the input tax. With the TRN number, the consumer can determine for sure if the business is qualified to collect VAT on supplies or not. Bill, invoice, or receipt produced by the migrant to make a buy should contain the TRN also the business’ name and address. To know more, read the blog.

What is TRN (Tax Registration Number) in UAE

The TRN number is a unique 15-digit code given by the Federal Tax Authority of the country. This remarkable number is utilized as an ID for individuals and corporations for keeping maintain their taxes, that is why TRN registration UAE is essential. Tax Registration Number is also directed as a VAT ID number in a few portions across the globe.

Any person or business that is registered for VAT in UAE is granted a tax registration number. And just the units that have been registered for the VAT in the country can collect the VAT from customers. In case you are not a registrant, collective VAT can cause your legal matter.

The concept of VAT is relevantly new for many units in the United Arab Emirates. VAT is commonly a tax that the corporations collect from their consumers and then provide to the government. In this country, a VAT of 5 percent was presented in 2018 to enhance the economy of the country and decrease the dependence on oil. Value-added tax on business transactions is regaled depending on the kinds of VAT supplies. Registrants are needed to collect their consumers’ five percent VAT on the taxable products.

The Importance of Verification of TRN registration Dubai

The rules of the United Arab Emirates regarding VAT are yet not as old as in the Europe and UK. The business district is still in the procedure of adjusting to these transformations. Unluckily, some parties can try to take benefit of people who don’t have sufficient experience and knowledge of VAT still. When a unit becomes a registrant in the country, it should make the payment of taxes to the government.

The Federal Tax Authority utilized TRN registration Dubai to notify registrants and maintain a record of their transactions. Registrants adopt the 5% tax rate into their cost and unpack the taxable quantity at the client’s expense. The money that they gather via VAT is then moved to the UAE government.

Now, in case a corporation isn’t registered with the Federal Tax Authority, this has no remarkable TRN that the government can utilize to maintain the record of its transactions. Non-registered corporations are not permitted to charge value-added tax for this reason. Although, there can be cases where corporations utilize fake TRN numbers to charge VAT to their consumers. Since they are not registered with Federal Tax Authority, they do not need to deposit this VAT price gathered from consumers to the officials. As such, this value ultimately goes into their pockets.

The Steps to Verify the Number of TRN registration Dubai

The invoice or slip should comprise the name, address, and TRN registration UAE business making the supply. A receipt or invoice contains a tax invoice code, or a remarkable number and issuance date, which makes the capable designation of the tax invoice and the sequential order of the invoice. The VAT charge is completely mentioned in the face of a legal tax invoice or receipt. You have to be able to get the TRN on the receipt –

Log in to the official website of the Federal Tax Authority.

Look for tax TRN verification and click the button.

Type the TRN number of your services provider or suppliers as given on the tax invoice.

Click on the validate option.

If the TRN number given by the service provider or supplier is right this will give the corresponding name in Arabic and English with the relevant TRN number granted in the country by the Federal Tax Authority.

Click on the submit option, you have to be capable to watch the name of the unit. Validating the TRN on the tax invoice got will facilitate and make sure the right filling of VAT returns and compensation of expected tax within the duration mentioned by the FTA. Newly registered ventures can take a little time to receive their tax registration number.

Read More : How To Apply For TRN Number In UAE