How to Obtain a TRN number in the UAE?

If you are considering starting your own business in Dubai, you might be confused about Tax Registration Numbers (TRNs) and how to apply for them. You may wonder about the process, how it works, and how Dubai investors or companies can obtain a TRN. This is an important topic, especially since the introduction of value-added tax (VAT) and the TRN system in the UAE. Many people have a misunderstanding about VAT and the Dubai tax regulations, particularly if they are foreigners. We know that, as a foreigner, getting to know all these can be a hassle for you. That is why our professionals at CDA can handle all the work for you if you want to obtain a TRN.

Now that you know you have a helping hand in obtaining a TRN, check out this link for more details on “How to Obtain a TRN.”

What is TRN in the UAE?

The TRN is a unique identification number provided for businesses and people interacting with the tax system in the UAE. The Federal Tax Authority (FTA) has provided this 15-digit number, which is necessary for a number of tasks, such as registering for Value Added Tax (VAT), submitting tax returns, and creating tax invoices.

Getting a TRN is an essential first step for any company, whether you are an experienced entrepreneur or are just getting started in the UAE. This thorough guide will help you through the application procedure and provide you with the information and resources you need to successfully get your TRN. The business entities, after getting the TRN from the authority, are required to use it and highlight it in various documents like tax invoices, credit notes, VAT return filings, etc.

Understanding Your TRN Eligibility

In the UAE, not every company needs a TRN. Here’s an overview to help you decide if you are eligible:

• Mandatory Registration: Imagine you are running a car dealership business that has generated more than AED 375,000 in taxable supply annually during the previous 12 months. If so, you are required to register for VAT and acquire a TRN.
• Voluntary Registration: Companies may elect to voluntarily register for VAT if their taxable supplies fall below the threshold. Benefits include the ability to collect input tax credits on purchases. The voluntary threshold for registration is AED 187,500.

Advantages of Having a TRN

Beyond the requirement for compliance, a TRN provides companies in the UAE with a number of benefits:

• Transparency and Credibility: A TRN increases trust with potential customers and partners by demonstrating to them that your company complies with UAE tax laws.
• Advantage of Input Tax Credit: Registered companies can lower their overall tax burden by claiming input tax credit on purchases made from VAT-registered suppliers.
• Simplified Tax Compliance: By streamlining tax procedures, the TRN makes it easier for you to file tax returns and take care of your tax issues online via the FTA portal.
• Qualifications for Public Bids: A valid TRN number is a requirement for many government tenders.
• Facilitate easy business operations: Obtaining a TRN can help the entities conduct business operations seamlessly, as it increases credibility and reduces the possibilities of any fraud or malpractice.
• Growth opportunities for the businesses: Businesses with the TRN have the potential to grow in Dubai, UAE. The entities can attract potential customers and foreign investors.

Documents Required to Get a TRN

Make sure you have the required paperwork ready before starting the application process.

• Company Trade Licence: A copy of the Department of Economic Development’s current trade license.
• Association Memorandum (MoA): A copy of the memorandum of agreement (MoA) for companies that are registered under the UAE Commercial Companies Law.
• Copies of Passports: Copies of passports for directors, owners, and signatories with authorization.
• Emirates ID Copies: Copies of each of the above people’s Emirates IDs.
• Details of the bank account: Proof that there is a current UAE corporate bank account.
• Tax Returns (if applicable): Copies of the most recent tax returns may be necessary for companies that have already registered for taxes in another jurisdiction.
• Import and Export Declarations: The entities will have to furnish their import and export declarations, if any.
• Turnover declaration letter of the entity: The entity has to declare the turnover for registration purposes.
• Address and contact details: The details of the address and the contact information, which are relevant, must be provided.
• Emirates ID: The shareholders or the managers will be required to furnish their Emirates ID.
• Sample invoices: A sample of the invoices from the suppliers or the customer is required to be furnished.

Step-by-Step Guide to Applying for a TRN

The FTA’s eServices platform provides a straightforward online application process for a TRN:

• Navigate to the eServices section of the FTA website. Select “Register for New User” and provide a working email address to establish an account.
• You will receive an email activation at the address you registered with. To validate your account, click the verification link.
• Use your registered email address and password to access the eServices site when your account has been validated. Find the “Register for Tax” menu item and choose “VAT.”
• Fill out the online application form, which contains eight sections, to apply for the TRN number. This form contains a series of sections where information about your business, activities, and contact details will be gathered. Make sure the data you offer is accurate and comprehensive.
• In accordance with the FTA’s requirements, upload scanned copies of each of the above documents.
• After checking and verifying all the details, electronically submit your application. The FTA will review your application and send you an email with the results.
• After receiving the necessary documentation, the FTA normally processes TRN applications in five business days.
• If your company is new to the UAE tax system or needs help with the application procedure, you should think about hiring a professional like CDA,  who can offer knowledgeable advice.
• There may be TRN validity periods. Maintaining an eye on the status of your TRN and renewing it on time is essential to preventing interruptions to your business operations.

Verification of the TRN

The entities might want to verify the TRN number in order to ensure the validity of the TRN in the invoice, check if the number is legit, and ensure accuracy while claiming the input tax credits. Verifying the TRN can also help the entities detect any VAT-related fraud.

The process of verifying the TRN includes the following steps:

• The first step includes visiting the FTA portal and clicking the TRN option on the right-side panel.
• The second step includes entering the TRN and the Captcha shown alongside, then clicking on the search button.
• The entity can see the business’s name linked to the TRN number if it’s registered; hence, verification can be done.

Conclusion

For companies doing business in the UAE, obtaining a Tax Registration Number (TRN) is essential. Even though you can apply immediately, it can take some time to get through the procedure. Imagine you are a newcomer to the business landscape and want your business to be registered under the VAT and to obtain the TRN for business transaction purposes, but you don’t have any idea about the processes involved in getting the TRN. Don’t worry, expert business set-up service providers can sort the processes for your businesses in Dubai, UAE, without much complexities while you sit back and focus on your business operations.

To know more about our varied services, click here

Your TRN application can be made simpler by CDA and its team of specialists. We’ll make sure you fulfil the prerequisites, assemble and confirm any required paperwork, assist you in completing the online application procedure, and answer any queries or worries you might have. 

Let CDA take care of the TRN registration while you concentrate on managing your company! 

How can CDA assist you in Dubai?

Being a newcomer to the land and starting a business might seem intimidating, especially when you don’t have any idea of the processes and laws that are to be met to get your business afloat in the market. The entities might not have insight into the tax laws, how to get the registration done, or how to obtain it. In these circumstances, professional business setup consultants in Dubai like CDA can be of assistance. Wondering how? Here is the answer: CDA’s experts are known for providing personalised business set-up services, including various other support services that an entrepreneur requires to get his business set up in Dubai.

Our experts can simplify the process of getting the VAT registration, getting the TRN number, sorting all the documents, and ensuring compliance with the laws. Our team can assist you in getting licenses from the concerned authorities, selecting the best locations for your businesses in Dubai, etc.

To learn more, approach our team now!