Crucial Information You Should Know about Tax Registration Number UAE

The UAE government introduced the value added tax system in 2018. This development was instrumental in transforming the taxation system of the country. Since the introduction of VAT, the FTA (Federal Tax Authority) has created a TRN for all the companies in the country. What is TRN? It is known as the Tax Registration Number. According to the FTA, a tax certificate is not required to conduct commercial activities. When it comes to VAT-related matters, they can use the TRN. Therefore, it has become an important for a business.       

TRN – an overview

A tax registration number UAE has 15 digits. It is a number and an identity that distinguishes one business from another. Another synonym of TRN is the VAT registration number. Upon registering your business for VAT, you will get this unique identity number. You have to quote this number in all details related to tax. Moreover, it makes a company eligible for several tax benefits. Following the rules and regulations of VAT is an inevitable thing for all businesses operating on UAE soil.

Perks of having a TRN

This number always helps a business meet the legal requirements in the UAE. In addition to the legal compliance, this number adds tremendous credibility to your business. It increases customer trust considerably. Moreover, you will gain the trust of your shareholders. The investors will become more confident about your business. Every business is legally bound to perform VAT registration and obtain a TRN. Otherwise, FTA will impose penalties. Legal actions will also be initiated against you in the due course of time. Another advantage of this number is that it makes buyer and seller transactions more systematic. The refund eligibility of the business becomes valid only after completing the VAT registration and securing a TRN. These advantages motivate companies in the UAE to get a tax registration number.      

Eligibility or requirement for VAT registration and TRN

The VAT law in the UAE clearly states that the minimum limit for VAT registration is fixed at AED 375,000. That is to say, if the revenue of a business is above AED 375,000, it should do the VAT registration. All companies with revenues above AED 187,500 are eligible for VAT registration. It is an optional thing. If your business completes the registration process successfully, you will receive a TRN number UAE. Collection and filing for VAT can only be done after the registration process. Be careful when submitting the application and other documents for your value added tax registration. A simple mistake can lead to the rejection of the application form. Then, you will have to start the entire submission process again. You can seek the help of an experienced tax consultant to make your registration process error-free. Skilled and Experienced tax advisory services know the inside out of the application process.

Learn about the application process

Registration for VAT tax must be done through EmaraTax system. The same thing applies to corporate tax or excise tax. Once the application is submitted, you will receive TRN. How can you make the process of securing a TRN simple? The first thing you should do is to create an FTA account. You can perform this task through the Emaratax portal. After creating a tax account using the process mentioned above, you should log into the portal to get access to your tax account. The user dashboard will display three options – corporate tax, excise tax and VAT. Select VAT and follow the guidelines. Before starting the registration process, you must read the eligibility requirements. Furthermore, ensure that you have all the documents at your disposal. Once again read the instructions and then use the Proceed button to move forward with your TRN application. The user-friendly EmaraTax portal guides you through the process smoothly with clear and concise instructions. If you have some doubts, talk to accomplished tax consultants to get the best advice. Once you furnish all details and upload relevant documents, you can press the Submit button. This is the process you need to follow to complete your application for VAT registration and TRN.          

Processing Time and Number Issuance

When your application is accepted, your business will be officially registered for value added tax. The processing time is around 20 business days under normal circumstances. Sometimes, extra information may become inevitable to complete this procedure. In such a situation, the process will get delayed for a few more days. Generally speaking, you will get the necessary documents, including a registration certificate, VAT TRN and GIBAN within 20 days. GIBAN stands for Generated International Bank Account Number. You can download the certificate from the portal by signing up to your account.       

When you plan to submit an application for a tax registration number in the UAE, you must hire the expertise of a reliable tax consultant. Top-quality firms run by eminent chartered accountants know how to make your application successful. In addition to VAT services, you can contact them for accounting, corporate tax, ESR services and excise tax solutions.