In the United Arab Emirates, the Federal Tax Authority (FTA) issues a 15-digit Tax Identification Number (TIN), referred to as a Tax Registration Number (TRN) or VAT Identification Number, to businesses registered for VAT.
One key obligation for new businesses is registering for VAT and obtaining a Tax Identification Number (TIN). This document explains the concept and importance of TIN in the UAE.
In this guide, we’ll break down:
Upon registering your business with the tax authorities, the Federal Tax Authority (FTA) assigns a unique 15-digit identification code known as TIN, TRN, or VAT Identification Number. This number serves as a tax ID for both businesses and individuals.
In the UAE, only businesses or individuals registered for VAT receive a TRN (Tax Registration Number), enabling them to charge VAT to their customers legally. Charging VAT without registration can result in legal penalties.
The format of TIN is 100-xxxx-xxxxxxx.
TRN or TIN is used for all tax-related filings in the UAE. So, no doubt, it is one of the most important identity numbers you will need for your business. The following points cover its importance in detail:
Registering your firm for TRN is the same as registering for VAT. So, the eligibility criteria to get your TRN also apply to VAT. It is:
Voluntary Registration Criteria
Mandatory Registration Criteria
Businesses with 375,000 AED or more revenue must register for VAT and obtain a TRN. The firm should have already exceeded this amount in the past 12 months or is expected to in the next month.
If you have already registered for VAT, you can find your TIN in your EmaraTax Account.
However, if you are a new registrant, follow the following steps to register for VAT. After the process is completed and you are approved, you will get your TRN, Generated International Bank Account Number (GIBAN), and VAT registration certificate.
To obtain a TRN number for your company in the UAE, the following documents are needed:
You can verify the validity of your TRN or that of your client or supplier using the EmaraTax Portal.
These terms are virtually interchangeable. In the UAE, the term Tax Registration Number (TRN) is commonly used, while VAT Identification Number is the standard term in many other countries. Both refer to the same 15-digit unique code assigned to businesses or individuals upon VAT registration. This number serves as a tax identifier for VAT compliance.
Throughout the blog, we have discussed the importance of TIN for your business. Once you cross the voluntary threshold of 187,500 AED, your business should register for VAT and get the TRN. By registering for a TRN, your business can avoid legal consequences and build some trust with customers and authorities.
The process is simple, but having the right documents and knowledge can make it smoother. Keeping up with these requirements helps your business run more efficiently and ensures you're following the rules.