There have been understandable confusions that came with the implementation of the value-added tax (VAT) system in the United Arab Emirates (UAE). Admittedly, not everyone is aware of what the tax system implies and how it works because the country has not experienced this before. It is the first time in history that UAE applied the tax to goods and services.
One of the questions that are pressing people, probably until now, is how they are going to go about getting a Tax Registration Number (TRN). This may be a question from the business community who are curious as to what it is and how to obtain it or the residents in the UAE who wish to remain updated about happenings in the country, or those who are looking into registering as a taxpayer business.
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Simply, TRN comes with finishing your VAT registration in UAE. The FTA has opened their portals to registration since 2017, and those who have failed to meet the deadline were given the chance again to register. For those who have not tried registering do not know for sure where to get the TRN. It is provided when the registration process for VAT is completed.
How to get TRN Number in UAE?
Getting a Tax Registration Number (TRN) is as simple as logging in to the Federal Tax Authority (FTA) portal. The TRN number in UAE is a unique 15-digit number available to businesses only once they have undertaken vat registration in UAE. To begin,
- Visit https://eservices.tax.gov.ae/
- Now, create an account on the FTA Portal
- After creating the account and verifying the email address provided, log in with the details
- After login, click on the “Register for VAT Option”.
- Now, fill in all the necessary details as per the 8 steps in the VAT Registration online form.
- Review your details and click submit for approval where it shall be sent for FTA approval.
- Finally, you will see the status of your VAT application and once approved will be able to view your TRN number.
First Off, What is VAT in UAE?
The Excise Tax was the first one in the tax system that was implemented in October 2017. The VAT was then introduced and applied throughout the whole country on the first day of January 2018.
It is expected that the rest of the countries in the Gulf Cooperation Council (GCC) are going to follow suit with the implementation of the VAT.
Get to Know VAT
This is a consumption tax that is added at the purchase of a product in a certain VAT rate. In the case of the UAE, the government has opted to apply one of the lowest rates of the VAT that is only at 5%.
The consumers are the ones who bore this amount that will then be collected by the businesses and paid to the government. There are cases that make it applicable for businesses to claim VAT refunds from the government.
Who are the Eligible Businesses to Register for VAT in UAE?
There are no changes to the original information that the government has laid down on the businesses in UAE. Those that offer taxable goods and services from AED 375,000 or higher as annual revenue, need to register for VAT and those who have minimum AED 187,500 taxable goods and services or less than the threshold amount can volunteer to register for VAT.
What Documents Do You Need to Prepare for VAT Registration in UAE?
When you decide to register for VAT, you need to have several documents prepared and scanned. These will have to be uploaded on the portal of the FTA.
The generally required documents for the registration are the following and they might change or some might be added depending on the nature of a business, type of a business and other factors.
It should also be noted that everything for VAT registration is done online and there is no need to have a physical appearance at any government department.
Documents required for VAT registration in UAE
- Trade license copy of the business.
- The partners’ or business owners’ passport copies.
- The partners’ or the business owners’ Emirates ID copies.
- The company’s address (including P.O box) and contact details.
- The company’s Memorandum of Association (MOA).
- The business owner’s contact details.
- The company’s bank details.
- The company’s income statement for the past year.
- The business’ experience.
How to Register and Obtain TRN?
With the documents in your position, all you need to do is to create a new account, confirm through email, go to registration, provide all the basic things that the registration form is asking, and once done, a TRN will then be automatically be issued to you.
VAT Consultants in UAE
Farahat & Co. is one of the leading VAT consultants in Dubai and all across the UAE. Our experience of more than 35 years greatly helps us in providing you with the quality service that you deserve.
It is not easy to deal with VAT and there is nothing wrong with asking for help in other to thrive. We can make it easier for you so that you can focus on generating more revenue for your company. Being a Tax Agent in UAE, we know exactly what you need and when you need it. If you feel that you need our service, contact us today for an assessment.