What You Should Do to Get Your TRN (Tax Registration Number)

There have been understandable confusions that came with the implementation of the value-

added tax (VAT) system in the United Arab Emirates (UAE). Admittedly, not everyone is aware

of what the tax system implies and how it works because the country has not experienced this

before. It is the first time in history that UAE applied the tax to goods and services.

One of the questions that are pressing people, probably until now, is how they are going to go

about getting a Tax Registration Number (TRN). This may be a question from the business

community who are curious as to what it is and how to obtain it or the residents in the UAE who

wish to remain updated about happenings in the country, or those who are looking into

registering as a taxpayer business.

Simply, TRN comes with finishing your VAT registration in UAE. The FTA has opened their

portals to registration since 2017, and those who have failed to meet the deadline were given the

chance again to register. For those who have not tried registering do not know for sure where to

get the TRN. It is provided when the registration process for VAT is completed.

To further understand the whole process of the VAT registration in UAE and how to get your

TRN, the below will explain in detail the things that you should know.

First Off, What is VAT in UAE?

The Excise Tax was the first one in the tax system that was implemented in October 2017. The

VAT was then introduced and applied throughout the whole country on the first day of January

2018.

It is expected that the rest of the countries in the Gulf Cooperation Council (GCC) are going to

follow suit with the implementation of the VAT.

Get to Know VAT

This is a consumption tax that is added at the purchase of a product in a certain VAT rate. In the

case of the UAE, the government has opted to apply one of the lowest rates of the VAT that is

only at 5%.

The consumers are the ones who bore this amount that will then be collected by the businesses

and paid to the government. There are cases that make it applicable for businesses to claim VAT

refunds from the government.

Who are the Eligible Businesses to Register for VAT in UAE?

There are no changes to the original information that the government has laid down to the

businesses in UAE. Those that offer taxable goods and services from AED 375,000 or higher as

annual revenue, need to register for VAT and those who have minimum AED 187,500 taxable

goods and services or less than the threshold amount can volunteer to register for VAT.

What Documents Do You Need to Prepare for VAT Registration in UAE?

When you decide to register for VAT, you need to have several documents prepared and

scanned. These will have to be uploaded on the portal of the FTA.

The generally required documents for the registration are the following and they might change or

some might be added depending on the nature of a business, type of a business and other factors.

It should also be noted that everything for VAT registration is done online and there is no need to

have a physical appearance at any government department.

Documents required for VAT registration in UAE

1. Trade license copy of the business.

2. The partners’ or business owners’ passport copies.

3. The partners’ or the business owners’ Emirates ID copies.

4. The company’s address (including P.O box) and contact details.

5. The company’s Memorandum of Association (MOA).

6. The business owner’s contact details.

7. The company’s bank details.

8. The company’s income statement for the past year.

9. The business’ experience.

How to Register and Obtain TRN?

With the documents in your position, all you need to do is to create a new account, confirm

through email, go to registration, provide all the basic things that the registration form is asking

and once done, a TRN will then be automatically be issued to you.

Source - https://farahatco.com/blog/what-you-should-do-to-get-your-trn/

Telephone: +971 4 2500251

Email: sales@farahatco.com