The United Arab Emirates is a land of opportunities, it can be witnessed by the rise in the number of numerous start-ups and enterprises there in recent years.
One of the many reasons that are attributed to such growth of businesses in UAE is mostly because of easing regulations, a good environment, and funding benefits.
With so many benefits and compliances, it is obvious that there is also a need to register and track down the companies that are starting here in such a large number.
Thus, in this article, we would be discussing the Tax Registration Number, and how you can find and register for it.
Tax System in UAE
The tax system in the United Arab Emirates is something that a lot of industry experts and financial advisers widely acclaim.
UAE does not impose any income tax on individuals, but there is an imposition of tax on corporates and banks.
However, UAE has a federal and provincial system, with each Emirate having its own set of rules and regulations, but generally, the tax system does not differ to a large extent.
Additionally, individuals are subjected to pay some other taxes including social security fees, which is a nominal portion for GCC nationals.
Even among the corporate tax, the imposition is restricted to only foreign banks and the oil companies here that do not fall in the tax-free zone of the country.
There are some other minor taxes available, for instance, tourism tax, property transfer tax, inheritance tax, etc.
The tourism tax and most of the minor tax rates vary depending on the different Emirates. Some states have one of them higher than the other.
The indirect tax system of UAE is based on VAT and Excise duty. The present rate of VAT is around 5%, which is exempted on many goods and services.
The excise duty is used here mostly for tobacco products and carbonated soft drinks, to prompt people to minimize their usage.
What is a TRN Number?
TRN Number or Tax Registration Number is a unique and customized number issued by the Federal Tax Authority in UAE that is required to be registered for taxes.
The basic purpose of this number is to keep a record and ensure timely compliance by individuals or businesses.
The main idea behind the TRN is to avail a record system for VAT (Value Added Tax) and other taxes related to goods and services.
If you find a number mentioned as VAT Registration Number, it is probably the same as TRN, since both terms are often used interchangeably in many regions.
It is a statutory requirement that you have to mention your TRN in your invoices, VAT returns, or credit notes. In case there is any correspondence between your business and the Federal Tax Authority, your TRN is mandatory to mention therein.
In case you wonder about the number of TRN, the answer is that every business is only allowed to keep one TRN and it cannot change unless the Tax Authority directs it.
How to Find the TRN Number of a Company in UAE?
If you run a business in UAE or are in a senior-level position here, you must know the process of filing for and finding the TRN of your company.
Primarily, you need to visit the website of the Federal Tax Authority of UAE at www.tax.gov.ae and then you would need to find the tab or option for TRN Verification.
This is the tab that would help you figure out and find the TRN number of your company in UAE.
You must have a TRN number to check, which you need to insert in this tab and then fill in the CAPTCHA code to ensure you are a human.
When you press Enter, the details associated with the company to which the mentioned TRN belongs would appear on your screen.
With this simple process, you can check the TRN number of your company within a minute or less.
Besides, you can use the same process to ensure that the TRN number of the company you are dealing with is correct.
In case you find it difficult or confusing, you might want to switch to a Tax consultancy firm or Tax Manager.
Do You Need a Tax Manager for TRN Verification?
TRN, being a 15-digit unique number for your business’ VAT registration, is an important component of your business identity and tax compliance.
If you are tasked to handle a transaction or to prepare a tax statement in UAE, you might first want to ensure TRN verification to be on the safer side.
If you employ or hire a Tax Manager, chances are he might have better knowledge about the functions and regulations of the Federal Tax Authority and might help you speed up your compliance or record keeping.
Even if you want to register for TRN as a new company or an existing company under the existing VAT regime, a Tax Manager can significantly expedite and facilitate the process.
While dealing with another corporate, a Tax Manager will help you ensure that the next company has a valid VAT/TRN and is legally competent to trade and deal with your firm.
If you are planning to de-register your TRN, it might get tricky with the bundle of forms and frequent visits to government offices.
Thus, in a nutshell, having a Tax Manager or specialist deal with these things is better.
In this article, we learned about the prevailing tax system in UAE and how you can learn more about it.
Additionally, we discussed the TRN number and how you can find this number for your own company and the company with which you are dealing something.
Lastly, we discussed the importance of a Tax Manager for you and how it can go on a long way in helping you with the TRN verification.
In case you still have some doubts, it is best to communicate or get in touch with the local authorities who can help you out with any of the tax-related queries and compliance.