In the United Arab Emirates (UAE), each company that has registered for Value Added Tax (VAT) holds a unique Tax Registration Number (TRN). The Federal Tax Authority (FTA) issues the TRN, and it is a vital part of tax compliance and business transaction processing.
In this article, we will discuss how to find the TRN number of a company in the UAE.
Also read: Tax Consultant in Dubai, UAE
What is a Tax Registration Number (TRN) in UAE?
A TRN is a 15-digit unique identifier assigned to businesses that are registered with the FTA under the Value Added Tax (VAT) system. It allows the FTA to observe and track tax-related activities. It serves the following purposes:
- VAT return filing
- Issuing VAT invoices
- Claiming VAT refunds
- Verification of VAT registration.
Steps to Find Tax Registration Number (TRN) of a Company in UAE
In UAE there are the following steps to find the Tax Registration Number (TRN) of a Company:
1. Checking Tax Invoices for the Company
The easiest and most common way of verifying a company’s TRN is from its tax invoice. A VAT-registered business is required to show its TRN in all tax invoices issued by it. Check for a 15-digit number possibly preceded by “TRN” on any invoice you have received from the company.
2. Review Official Company Documents
Apart from invoices, other official company documents could also contain the TRN, such as the following:
- Contracts: The TRN of the parties involved are usually included in business contracts.
- Quotations: VAT-registered businesses should display their TRN on formal quotations.
- Business Cards: Some companies show their TRN on their business cards. Most businesses include their TRN on the official website under Contact Us or About Us.
3. Reach Out to the Company Directly
If you can’t find the TRN on the documents, then the best way is to contact the company. You can always call, email, or even connect with the company through their social media accounts and ask for their TRN.
4. Access the UAE Federal Tax Authority (FTA) Website
The most accurate way to check for a company’s TRN and VAT registration status is through the Federal Tax Authority (FTA) website. Although not all TRNs are publicly accessible on the FTA website for direct searches, following the general steps should help verify:
- Access the FTA Website: The first step would be to access the official site of the Federal Tax Authority (FTA) of the UAE.
- Look for the “TRN Verification” Service: In the services section, search for “TRN verification” or similar wording. It is to be noted that The FTA regularly updates its website, so the exact navigations may differ.
- Enter the TRN: If you have a TRN, enter it in the field provided for that.
- Submit and Analyse: Submit the TRN for verification. The system would check whether the TRN is valid and associated with any registered business.
Common Errors to Avoid When Finding a Company’s TRN Number
Below are some of the mistakes to avoid when searching for a TRN:
- Assuming all businesses have a TRN: Only businesses that meet the mandatory VAT registration threshold or have voluntarily registered under VAT are assigned a TRN. Many businesses in the UAE do not have a TRN.
- Relying solely on unverified sources: Always check TRN through official websites or by directly contacting the company.
- Using outdated information: TRNs can be revoked or changed in certain circumstances. So, make sure that you are keeping yourself updated with the latest information.
Company TRN Number Verification in UAE
A company’s tax registration number is often used to verify the validity of VAT registration. Entities must have in-depth know-how of the VAT Tax Registration Number verification procedure in the UAE.
This confers much surety upon the accuracy of the company’s TRN before the commencement of any transaction, or before preparing a tax invoice for the respective company. Approved tax agents in Dubai can seamlessly assist individuals in verifying the requisite information of a tax-registered business in the UAE.
Why is it Important to Verify a Company’s TRN?
For the following reasons, any verification of a company’s TRN is very important:
- Prevention of VAT fraud: This guarantees that the company has registered properly under VAT, thus reducing the chances of VAT fraud.
- Ensures Compliance: It acts as evidence that your business is complying with the UAE tax laws which protect you from penalties or legal difficulties.
- Maintains Accuracy in Tax Records: It helps keep VAT invoices and receipts accurate; thus it is easy to file for tax returns.
- Required for Transactions: TRN has to be on all tax-relevant documents to avoid any hassles related to business operations.
- Enables trustworthiness: A TRN verification makes the company more credible and transparent, especially in dealing with new clients or suppliers.
Importance of a TRN Verification for Companies in UAE
- The TRN is a unique 15-digit number that is issued to UAE businesses upon VAT registration.
- A TRN enables easy communication between the supplier and purchaser of goods and services while preparing a tax invoice or any other tax-related documents.
- Obtaining a TRN is highly essential for organizations seeking to claim back the tax paid on the purchase of goods and services made by the business while processing the final goods.
- A tax-registered individual can recover the VAT paid in situations such as:
- If VAT is paid for services such as water and electricity for a commercial property, the tax can be refunded.
- A developer of a property can recover the VAT on all the business costs.
- As per the UAE VAT Law, businesses are compelled to mention the TRN in all tax-related documents such as:
- Tax invoices issued by the seller
- Filing VAT returns for the company.
- Tax credit notes of a business.
- Documents required to specify TRN as per the rules and regulations.
How Farahat & Co. Can Assist You
At Farahat & Co., we provide complete tax advisory and compliance services for businesses in the UAE. Our team of licensed tax professionals can assist you with:
- VAT Registration: We can guide you through the VAT registration as well as completing the process to obtain the TRN in a hassle-free manner.
- TRN Verification: We can assist you in verifying the TRNs of your business partners and ensure their accuracy.
- Tax Compliance: We can help you comply with all the VAT requirements, such as filing returns, keeping records, and handling tax audits.
- Tax Advisory: We offer professional tax advice that is relevant to your business.
Contact us today at Farahat & Co. to find out how we can assist you with your tax concerns in the UAE.