How to Apply for a TRN Number in UAE?

How to Apply for a TRN Number in UAE?
How to Apply for a TRN Number in UAE?

If you are an entrepreneur or someone planning to register as a taxpayer in Dubai and are unsure about how VAT and TRN (Tax Registration Number) work, this blog is a must-read for you. As a newcomer to UAE taxation, it is natural to have confusion about the procedures for obtaining a TRN number. However, worry not, conducting thorough research on this topic before setting up a business in Dubai or becoming a taxpayer is crucial.

For your business setup in Dubai, it is of utmost importance to ensure that the companies you deal with are legitimate and duly registered with the appropriate authorities. A reliable way to verify a company’s legality is to check its tax registration number (TRN). In the following sections, we will look into the procedures and essential aspects of TRN registration to help you navigate the process smoothly.

Remember, being well-informed about TRN and VAT will contribute significantly to your success as an entrepreneur or taxpayer in Dubai. So, let’s gather the necessary knowledge!

What is TRN?

The Tax Registration Number (TRN) is a unique 15-digit identifier issued by the Federal Tax Authority (FTA) in the UAE to differentiate businesses from one another. Whether it’s a business setup in Dubai, UAE, or any other entity, the TRN number is assigned only once to each business, even if it has multiple activities or branches.

For proper compliance, it is essential that any business with a TRN number includes it in all their invoices, documents, and financial transactions such as VAT Return Filing, Tax Invoice, Tax Credit notes, and more. This compliance ensures that only entities with a valid TRN certificate are authorized to charge VAT from their customers.

After starting business setup in Dubai, adhering to these regulations is crucial to maintain legality and transparency in financial transactions. Make sure to obtain and utilize your TRN responsibly to smoothly operate within the UAE’s taxation framework.

What are the steps to obtain TRN number in Dubai, UAE?

If you are an entrepreneur or planning to register as a taxpayer in Dubai, it is important to understand that every company doesn’t necessarily need to register for a Tax Registration Number (TRN) unless they are eligible for VAT registration. The criteria for VAT registration in UAE are based on the company’s taxable supplies and imports, which should exceed AED 375,000 per year. However, businesses with revenues above AED 187,000 but below AED 375,000 can voluntarily register for VAT and obtain a TRN.

Documents you need for registering TRN number in Dubai, UAE

  • Trade license
  • Emirates ID (for individuals)
  • Passport copy (for non-residents)
  • Tenancy contract or title deed (proof of physical presence in the UAE)
  • Bank account details

Steps to apply for TRN number

To begin the TRN registration process, visit the Federal Tax Authority (FTA) website, which is responsible for managing the UAE’s tax system. Sign up and create an account on the FTA’s website. An email will be sent to your address to initiate registration. Confirm your email and log in to the e-service account. Click on “Register for VAT” in your dashboard and follow the “Getting Started Guide” before proceeding with the application. The application form consists of 8 sections to apply for your TRN number.

How to verify your TRN number?

  • Visit the FTA’s website in the United Arab Emirates
  • Enter the TRN in the provided space
  • Enter the security code
  • Click on the ‘Validate” button
  • The portal will display the Legal Name of the business and confirm the TRN’s validity if it is registered.

Remember, while the TRN registration process may seem straightforward, it’s natural for businesses setting up in Dubai, UAE, to have doubts and concerns. In such cases, Marqueway is your reliable partner to assist and address all your queries and uncertainties regarding TRN registration and VAT compliance.

Why do you need TRN in UAE

TRN for Businesses:

a. Value Added Tax (VAT) Compliance: One of the primary reasons businesses need a TRN is to comply with the UAE’s VAT regulations. VAT, introduced in 2018, is applicable to most goods and services at a standard rate of 5%. A TRN allows businesses to register for VAT, charge it on their sales, claim input tax credits on eligible purchases, and file VAT returns as required by the FTA.

b. Import and Export Activities: If your business engages in international trade, a TRN is essential for customs clearance purposes. It enables smooth import and export procedures, ensuring your goods move seamlessly across borders.

c. Access to Government Contracts: Many government entities and corporations require businesses to have a TRN to participate in tenders and secure lucrative contracts. A valid TRN demonstrates your business’s tax compliance and credibility, enhancing your chances of winning these opportunities.

TRN for Individuals:

a. Residency Eligibility: For expatriates living and working in the UAE, obtaining a TRN is a crucial step towards tax residency. The TRN is often linked to the individual’s residence visa, helping the authorities determine their tax status.

b. Banking and Financial Transactions: A TRN is commonly requested by banks and financial institutions when opening accounts or conducting significant financial transactions. It serves as a part of the know-your-customer (KYC) process, ensuring compliance with regulations.

c. Property Transactions: When buying or selling property in the UAE, individuals must present their TRN. It is vital for completing property-related paperwork and ensuring adherence to tax regulations.

How Marqueway could help you grab your TRN number?

Marqueway proudly stands as one of the top-notch business setup consultants in Dubai, UAE, renowned for guiding countless businesses toward achieving success in the UAE market. Our highly professional workforce is dedicated to providing unwavering support, ensuring that the procedures for obtaining a TRN number become effortless for all businesses setting up in Dubai, UAE.

We take great pride in our transparent business setup services, free from any hidden charges, and our commitment to offering up-to-date and seamless solutions sets us apart as the best choice in the UAE. Beyond business setup, we provide expert assistance on various crucial matters, including tax, finance, and business operations, while guiding our clients through the intricacies of UAE laws and legal requirements. If you have any questions or concerns, feel free to contact us. Our team is always ready to provide the assistance you need for your business’s success in Dubai, UAE.

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