In the United Arab Emirates, the Federal Tax Authority issues a unique Tax Registration Number (TRN) to each person or business registered for tax purposes so that they can be identified, report compliance, and keep records.
When a registered business receives supplies from a registered person, it is helpful to ensure that input tax on the supply can be claimed without any problem.
Customers can verify the VAT status of a business with a TRN number for added peace of mind while handling business.
What is TRN Number In UAE?
A TRN is a unique 15-digit number to differentiate the business.
Usually starts with 100. A typical TRN looks like 100-xxxx-xxxx-xxxx
Businesses and individuals use this code to keep track of taxes.
TRN number ensures that the business is a registered one and allows businesses to claim input tax credits.
The only person who can charge VAT on supplies is one who has a valid TRN.
A business registered with the TRN must always mention the number on all tax-related documents including:
- VAT Return
- Tax Invoice
- Tax Credits
- Additional documents are required for stating the TRN as per UAE VAT laws
In the United Arab Emirates, there are a number of businesses with false tax registration numbers. Therefore, if you do not wish to pay unethical VAT, make sure to verify and check the TRN (VAT verification).
Check the TRN number on each bill to ensure that VAT is included.
False TRNs might include:
- TRNs that are less than 15 digits or greater than 15 digits
- Not starting with 100 number
- Incorrect format
What are the steps to report a fake TRN?
In the event that you notice someone using a fake TRN, you can contact the authorities via the VAT helpline or via email:
VAT Helpline Contact Number: 600 599 994
VAT Complain Email Address: [email protected]
VAT Registration: Primary Objectives
- Taxes collected from customers must be paid to the government by the eligible organization.
- Likewise, the organization must be reimbursed for taxes it has paid to its suppliers.
- Businesses with supplies and imports exceeding AED 187,500 can opt to register for VAT. Not needed if it’s less than that.
- The taxable supplies and imports of businesses exceeding AED 375,000 must be registered to pay VAT.
- A foreign business can recover VAT in the UAE when visiting.
A fake Tax Registration Number (TRN) isn’t uncommon. A fake TRN can harm businesses.
As a tactic to make sure your business is conducted ethically and safely in the UAE, you must learn about TRNs to prevent suppliers from cheating you by using fake TRNs.
Validating the Tax Registration Number (TRN) can help a business avoid bad input credit invoice losses.
Therefore, VAT verification is essential for safe value-added tax claims.