Tax Registration Number (TRN) is assigned to all the Value Added Tax (VAT) registered taxpayers in the United Arab Emirates (UAE). The TRN verification is crucial considering the potential VAT frauds, such as charging VAT without holding a valid TRN. These scenarios ultimately lead to revenue loss for the government.
Hence, the authorities provided a facility to verify TRN. This article explains what TRN is, its importance, and a step-by-step process to verify it.
TRN stands for Tax Registration Number under the UAE VAT laws. It is a unique number assigned by the Federal Tax Authority (FTA) to VAT-registered businesses. TRN is also called a VAT Number or VAT Registration Number.
Under UAE VAT laws, the taxable person with TRN can only charge VAT on invoices. Accordingly, they must mention the valid TRN on all invoices. Further, the 15-digit TRN separates the registered and unregistered businesses.
UAE VAT Law mandates businesses to quote TRN on all tax-related documents, such as:
TRN Verification helps in making sure
Anyone can verify TRN on the FTA portal. Below is the step-by-step process to verify TRN:
Step 1: Visit https://tax.gov.ae/en/default.aspx and click the ‘TRN’ icon on the right-side panel.
Step 2: Enter the TRN and Captcha code in the boxes provided. Now, click on the ‘Search’ button.
Step 3: You can see the business’s name linked to the TRN and check the same with your record.
1. What is the procedure to register for TRN in the UAE?
FTA maintains https://eservices.tax.gov.ae/ website where you can get your Tax Registration Number (TRN) in the UAE. First, you must create an e-service account, then fill out the registration form, and you’ll receive your TRN in line with UAE VAT regulations.
2. How many digits does a TRN Number contain?
TRN Number is a 15-digit number issued by the Federal Tax Authority, UAE.
3. My supplier quoted a 16-digit TRN on the invoice, and my accounts team says it is wrong. How can I verify the TRN?
Usually, the FTA issues a 15-digit unique TRN / VAT Registration Number to the taxpayers. Hence, the 16-digit TRN mentioned by your supplier has some things that need to be corrected. You may check the TRN using the steps mentioned above to ensure the validity of the TRN.
4. Do I have to mention the VAT Registration Number in VAT returns that I file with FTA?
Yes, UAE VAT Laws mandate taxpayers to mention the TRN in their VAT returns.
5. What happens if I don’t verify the TRN while paying an Invoice?
The input tax paid on purchase can go to the wrong hands, and you may be unable to claim the Input Tax Credit (ITC). Hence, it is always advisable to do VAT Verification.