TRN verification in Dubai seems to be more crucial than ever as the region is entering the realm of taxes. TRN is one of the most important legal identities for any company doing business in the UAE. As a result, the UAE government is strict and swift in handling any TRN and company fraud attempts; yet, despite the government’s best efforts, TRN fraud is not unusual in the UAE.
In this article, we will help you learn about TRN verification, the steps to do so, the importance of the process, and more. It is critical for business managers, investors, and customers to completely comprehend the TRN Verification Dubai procedure; it takes only a few seconds and you may check TRN while on the go.
1. What is TRN?
TRN, or Tax Registration Number, is a unique number assigned to all persons who have registered for VAT with the Federal Tax Authority inside the UAE. This 15-digit number, provided directly by the FTA, is intended to distinguish one registered entity from another. Thus, if you run a business in Dubai, obtaining a TRN could be extremely advantageous.
The UAE, like the great majority of countries around the world, imposed taxes on everyday commodities and services. This adjustment was implemented on January 1, 2018, in order to diversify income streams. Because Saudi and UAE significantly rely on oil, the Value Added Tax is in place to wean the country off of its reliance. Saudi Arabia withholding tax is a bit high than UAE.
According to the Federal Tax Authority’s website, the implementation of VAT and other taxes aims to raise revenue through several mechanisms. This is done to ensure that government departments can sustain the standards established and provide good amenities and life quality to future generations.
These programs are also in place as a means of rectifying habits that are harmful to society. One example is the imposition of excise charges on goods that are damaging to the wellness of UAE residents. Among these items are carbonated beverages, energy drinks, and cigarettes. With the introduction of VAT came the requirement for tax registration numbers and TRN verification.
Your TRN is assigned to you automatically after your company’s VAT registration is complete and accepted. When you apply for VAT, you will obtain a VAT certificate, which allows you to charge your tax on your sales.
1.1 Is the Emirates ID and the TRN Certificate the same?
Because both have 15 digits, a newbie to the UAE may easily mistake the TRN for the Emirates ID. However, keep in mind that they are structurally and functionally distinct.
The Emirates ID is necessary for personal identity, whilst the TRN serves for business identification. The UAE government mandates all residents and citizens to apply for and carry an Emirates ID at all times.
In addition, TRN is mandatory for all UAE enterprises to lawfully conduct all commercial activities and reporting.
TRN and Emirates ID are issued by distinct authorities. To receive your Emirates ID, you must submit it to the Federal Authority for Identity, Citizenship, Customs, and Port Security (ICP). If you own a business, you must register it with the Federal Tax Authority (FTA) and obtain a valid tax registration number, or TRN.
2. What are the steps for TRN verification in Dubai?
The TRN check procedure in the UAE is quite convenient for anyone who owns a computer or a smartphone. When a company acquires a TRN from the FTA, the database recognizes the company as a valid registrant. Anyone can use the FTA website to check a company’s legal registration status. Here is how you can go about it.
Originally, the FTA asked users to sign up on their site with their personal information in order to undertake TRN verification Dubai. However, everyone can now register, ensuring complete openness throughout the process.
- Quick Visual Verification
All TRNs have a consistent digit format that is easy to recognize. You can just examine the number and see if it has the correct format before getting online for TRN verification Dubai.
A TRN always begins with 100 and then there are three sets of 4 digits. Consequently, the structure is as follows: 100-XXXX-XXXX-XXXX.
If you detect any of the preceding, it could be a false TRN:
- Having less than 15 digits.
- Not using 100 as the first 3 digits
- Not having the proper format.
After visually confirming that the TRN is in the right format, you can validate it online using TRN verification Dubai.
2.1 TRN verification steps
In a few simple steps, you can do your TRN verification let us see:
Firstly, go to the VTA website to verify TRN. The website has a direct link for the TRN verification, you can quickly access it. On the other hand, you can also conduct a Google search and find it easily.
Then, when you arrive at the TRN verification UAE site, you will see a text box where you may input the TRN as well as another text box where you can enter a captcha or supplied security code. Enter the TRN from your payment receipt, invoice, or company documents with care. Also, accurately enter the pin number and select or tap “Validate.”
Lastly, after you click “Validate,” the website will compare the TRN you entered to their business database. If the database discovers a match with a legitimate registrant, it will display the text “TRN is Available in the System.” The screen will also display the legal name of the company entity in Arabic and English. If the system does not locate a match, the text “TRN does not appear in the system” will show.
This procedure assures that the company you are working with as a client has a valid TRN and is lawfully operating in the UAE. As a business owner, you should also validate your TRN to ensure that your consumers can always verify it.
3. Why is TRN verification important?
The UAE’s VAT regulations are still not as ancient as those in the United Kingdom and Europe, for example. The corporate community is still trying to understand these developments. Unfortunately, some parties may attempt to profit from those who do not yet have sufficient knowledge and experience with VAT.
When a company registers in the UAE, it must pay tax to the government. The FTA uses a TRN to identify users and track their transactions. Registrants incorporate the 5% rate of tax in their price and pass the tax burden on to their customers. The funds collected by VAT are subsequently distributed to the government.
If a corporation is not complying with the FTA, it no longer has a unique TRN that the state can use to trace its transactions. Because of this, non-complying businesses cannot collect VAT. However, there may be instances where businesses utilize illegal TRNs to gather VAT from their consumers. Because they are not in place according to the FTA, they do not need to deposit the VAT they collect from clients with the government. As a result, this sum tends to end up in their hands.
4. How to report a fake TRN?
In the UAE, failing to have a valid TRN when invoicing consumers with VAT is deemed dishonest and a crime. If a consumer discovers a fraudulent TRN through visual examination or TRN verification UAE, they must report the situation.
Fortunately, reporting a fraudulent TRN is an easy process. FTA can be reached by email or phone.
- You can call FTA at 600 599 994.
- Contact the FTA by email at info@tax.gov.ae.
5. Importance of a Tax Registration Number
- A TRN is used to engage sellers and customers while creating invoices or other paperwork-related papers.
- TRNs are also useful as a consumer if you want to recover back the tax you spent on the acquisition of goods and services.
- It is also essential if you want to claim a tax refund for electricity and water bills paid in a business space.
- It gives your company a sense of legitimacy and power.
- Once registered for VAT, your company can take advantage of several tax breaks and claim others.
6. Necessary documents to register for a TRN
The FTA needs the submission of a number of documents pertaining to your company and the people participating. They are as follows:
- A copy of the trade license
- The signatory’s passport or emirates id.
- Monthly turnover declaration on firm letterhead, signed by the authorized representative.
- Purchase orders and lease agreements are examples of financial papers.
- Association memorandum.
- The company’s registered address.
7. How can Connect FZ help you?
Connect FZ is the perfect ally to help you deal with your TRN verification. With our professional support, you can ensure that you are compliant while doing business in the United Arab Emirates. Our company is the top free zone consultation agency in the region, providing the following services:
- Business set-up remotely.
- Company formation in free zones.
- Set-up in Mainland.
- Cyprus company formation.
- Value-added services.
Our team can help you establish and develop any type of business in the following areas:
Do you want us to handle your TRN verification process? Get in touch with us! Contact us via email at contact@connectfz.com or call us at +971 43 316 688. We will make sure to handle every step of the process and, also, provide you with more solutions to enhance any business procedure.
Sanjyam DhingraShe is an esteemed Compliance Officer with extensive experience in ensuring corporate adherence to regulatory standards. Her expertise spans a wide range of compliance functions, including regulatory analysis, risk management, and the implementation of compliance programs. She excels in identifying potential compliance issues and developing strategic solutions to mitigate risks.
