The Tax Registration Number (TRN) is a unique 15-digit number obtained after the VAT registration of a company to differentiate one entity from the other. VAT is an indirect tax imposed on the purchase of goods and services. The implementation of VAT has increased government revenues to improve public welfare in the UAE.
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Importance of a TRN for Businesses in UAE
- The TRN is a unique 15-digit number that is issued to businesses on VAT registration.
- A TRN can enable 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 can be beneficial for an organization 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, A business must 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.
TRN Number Verification of a Company (TRN verification)
A tax registration number of a company can use to verify the validity of VAT registration. A tax agent in Dubai can assist an individual to verify any information of a tax registered business in the UAE. However, for utilizing such services, an individual must be aware of the VAT TRN verification Dubai, UAE. This process helps an individual to be sure of the correct TRN of a company before commencing the transaction or prior to preparing a tax invoice for the respective company. This tool initially restricted, but the government recently allowed the public to verify the TRN by third parties.
Also read: What You Should Do to Get Your TRN
Benefits of hiring a Tax agent to find a TRN in UAE
May have a strong relationship with the Federal Tax Authority
A tax agent may have a strong relationship with the Federal Tax Authority (FTA), to acquire quick results while assisting an individual to find a TRN in the UAE.
Facilitates the VAT registration process
A tax agent can assist an eligible business to register for VAT, through a simplified procedure in the UAE.
Assists in quickly obtaining the TRN
A TRN processed the registration of VAT for a business. However, delays may exist in obtaining the tax registration number. A tax agent seeks to eliminate any delays in obtaining the TRN for a registered business
Help in the VAT TRN verification UAE
A tax agent may provide amicable assistance with the TRN verification UAE process. This process ensures that the business paying VAT (Purchaser) and the company charging VAT (Seller) have a valid tax registration number.
Provides help in de-registration of the TRN
The process of de-registration can often be considered difficult. A tax agent can simplify the process and provide quick results to a business seeking to de-register their VAT in the UAE.
The recent introduction of VAT in the UAE has led to various queries regarding the new tax system. It is essential for the eligible businesses to register for VAT, as well as maintain the necessary records to file the returns and claim refunds for certain transactions. Farahat & Co provides a qualified and experienced team of VAT consultants that can assist a business or an individual to register for VAT, acquire a TRN number, and file for VAT returns. The team can also help in various other services relating to VAT to provide organizations with a streamlined procedure to the tax system maintained within the company.