Everything You Need to Know About TRN Verification in Dubai
As the UAE becomes a bigger and more attractive hub for business people, new businesses grow every day in Dubai. But even though this city can be the most advantageous location for a company, several requirements shall be fulfilled first. For example, completing the TRN verification process in Dubai is essential for any company that conducts business in the emirate. In this article, you will learn all you should know about the TRN (Tax Registration Number) and its verification procedure. And here you can also find the reasons why having this element is important for a company in the UAE. Besides, you will also find useful information and tips related to the process to obtain a TRN for your company. Why is TRN Verification Important in Dubai? As we previously mentioned, all companies operating in Dubai or the UAE must obtain a Tax Registration Number or TRN. But before obtaining it, it will be necessary to learn about its main characteristics, function, and importance for your business. And its main characteristic is that this unique number is issued by the FTA or Federal Tax Authority to VAT-registered businesses. Now, as for its function, this unique 15-digit code is like an ID for companies and individuals for tracking taxes. On the other hand, you can obtain your TRN by registering for the VAT (Value Added Tax) in the UAE. Therefore, if your company charges VAT to customers, it is necessary to have this number. Or else there will be fines and other penalties for your business. Lastly, it is also worth mentioning the importance of TRN verification in Dubai and the consequences of not having a valid TRN. Once a company becomes a registrant in this country, it is mandatory for it to pay taxes to the government. And if that company has a valid TRN, it will be easier for the authorities to keep track of the company’s transactions. As you may know, companies must collect 5 percent of VAT from their customers and send it to the authorities. However, some businesses may try to take advantage of this and collect VAT from customers without being registered with the FTA or having a valid TRN. In that case, these businesses do not transfer that money to the government but keep it, which is illegal. As a result, they can instantly get fines and penalties for this reason. Of course, unregistered companies are not allowed to collect VAT. Therefore, you must obtain a valid TRN for your company if it is eligible for collecting VAT in the UAE. How to Obtain a TRN? Obtaining your Tax Registration Number is a straightforward process that you can easily complete online on the FTA’s official website. As a matter of fact, the process consists of some simple steps you must follow, which you can find below: Before obtaining a TRN for your company, you must verify that your business is eligible for collecting VAT in the UAE. And if it is eligible, you have to register for VAT on the FTA’s official website. After that, you will be able to start the process to obtain your TRN. Once you have registered your account on that particular website, you can start the process to get your unique TRN. And this procedure will require you to submit a number of documents that we will mention below. And right after submitting your application form and documents, the authorities will review them and issue your TRN certificate. Then, you will receive your unique 15-digit code that will identify your business and allow you to collect VAT. Furthermore, once you obtain your TRN, it is necessary to complete the TRN verification process in Dubai. This way, you can make sure and prove that you have a valid TRN. And just like the previous process, you can also carry out this one through the FTA’s official website. There you will find a special tool that verifies the existence of Tax Registration Numbers that were given to businesses. Below, you will be able to find further information about the steps you must follow during the application process for getting your TRN. Plus, you will also find a list of all the documents that you must submit to the authorities during this procedure. Lastly, you will learn how to verify your TRN by using the online tool provided by the FTA. Documents Required for TRN Verification It is necessary to provide a number of documents in order to carry out the TRN verification process in Dubai. For example, among the main ones, you will find the company’s MOA (Memorandum of Association) and trade license. Moreover, it will be essential to provide import and/or export declarations as well, along with other documents such as: Your company’s bank account details. The Emirates IDs of the shareholder and/or the manager along with copies of their passports. Your company’s turnover declaration letter. Contact details and address of your company. Your company’s income statement from last year and bank details. And sample invoices from your customers and suppliers. Apart from the documents you need to complete the process to obtain your TRN, other documents are necessary for other procedures. For instance, as per the UAE VAT laws, there is a requirement for all companies registered for VAT with a TRN. And that requirement is that these companies must mention their Tax Registration Number on every invoice that they issue. As you may already know, the TRN of a company is a 15-digit number that identifies that particular business. Therefore, in order to differentiate it from other businesses, the importance of TRN verification in Dubai also relies on mentioning it in tax-related documents. For example, every tax invoice, VAT return, tax credit note, and other similar documents requires you to specify your TRN. Furthermore, keep in mind that a taxable person who has TRN can only charge VAT on invoices. The TRN Verification Process Now that you know about the required documents for the TRN verification process
