TRN (Tax Registration Number) is one of the most vital legal identities for any business operating in the UAE. The government of the UAE is rigorous and prompt in dealing with any TRN and business fraud attempts; however, despite sincere efforts from the government, TRN fraud is not uncommon in the UAE. TRN Verification is essential in Dubai in order to legally charge VAT (Value Added Tax).
It is essential for business owners, entrepreneurs, and customers to fully understand the process of TRN Verification Dubai; it takes less than a minute, and you can verify TRN on the go.
Let’s go through what a TRN is, why you need it and a step-by-step process to verify a TRN in the UAE.
A TRN (Tax Registration Number) is a unique number allotted to every business by the UAE’s Federal Tax Authority (FTA). All businesses that have taxable supplies and imports that exceed AED 375,000 per year require the TRN to file their taxes and interact with other businesses and government entities.
TRN verification in UAE is very convenient for anyone with a smartphone or computer. Once a business obtains a tax registration number from the FTA, the database records the business as a valid registrant. Anyone can visit the FTA website to verify a business’s legal registration status. Here’s how you can do it.
Previously, the FTA required users to register on their website with identity details to perform TRN verification in the UAE. Registration has now been made available to everyone, ensuring excellent transparency in the process.
All TRNs have a specific format of digits that you can identify quickly. Before going to check it online for TRN verification Dubai, you can simply look at the number and see if it has the right format.
A TRN always starts with 100 and then has three sets of four digits. So, the structure looks like this: 100-XXXX-XXXX-XXXX.
When you notice one of the following, it may indicate a fake TRN:
- Not containing exactly 15 digits
- Not starting with 100 as the first three digits
- Not having the correct format
Once you confirm visually that the TRN is in the correct format, you may validate it online with TRN Verification Dubai.
Here’s how to verify a business TRN in a few simple steps.
FTA’s website has a direct link where you can validate a TRN.
The link is: https://eservices.tax.gov.ae/en-us/trn-verify
Once you land on the TRN verification UAE page, you will find a text box to enter the TRN and another text box to enter a captcha or given security code.
Carefully enter the TRN you will find from your money receipt, invoice, or business documents. Also, enter the security code correctly and click or tap “Validate”.
After you click “Validate”, the website will match the entered TRN with their business database.
If the database finds a match with a valid registrant, it will show a text saying, “TRN is Available in the System”. The window will also show the business entity’s legal name in English and Arabic.
In contrast, if the database does not find a match, a text saying “TRN does not exist in the system” will appear.
This process ensures that the business you are dealing with as a consumer has a valid tax registration number for operating legally in the UAE. You should also verify your TRN as a business owner to make sure your customers can always authenticate it.
Not having a valid TRN while invoicing customers with VAT is considered fraudulent and a crime in the UAE. Consumers must report such an incident if they find a fake TRN through visual inspection or TRN Verification UAE.
Fortunately, the process to report a fake TRN is pretty simple. You can contact FTA by phone or email.
- Contact FTA by phone: 600 599 994
- Contact FTA by Email: firstname.lastname@example.org
Now that you know how to do a TRN verification in Dubai, what if you don’t have one and need to obtain it for your business in the UAE?
FTA allows UAE businesses to apply for TRN registration online through the FTA e-services portal.
Visit this link: https://eservices.tax.gov.ae/en-us/signup, and open sign up for your FTA account.
After signing up, the web portal will provide you with resources specifying the documentation requirements. Here, you will need to provide full details of your business, including the following information:
- Business type
- Business location and whether it is located in a free zone in the UAE
- Registration criteria (mandatory or voluntary)
- Business owner’s details.
When applying for your tax registration number in Dubai, you will need to provide scanned copies of the following documents:
- Partnership agreement (for partnership businesses)
- Articles of Association
- Passport or Emirates ID
- Any other documents containing ownership information
In addition, you will also need to provide the bank account details of your business. If you are not managing the business yourself, you’ll need to provide the contact details of a designated business manager whom the authority can contact for legal reasons.
A newcomer in the UAE could easily confuse the TRN with the Emirates ID because both have 15 digits. However, note that they are inherently different in structure and purpose.
The Emirates ID is used for individual identification, while the TRN is used for businesses. The UAE government requires all UAE citizens and residents to apply for an Emirates ID and keep it with them all the time.
In contrast, TRN is exclusively needed for all UAE businesses to perform all business transactions and reporting legally.
The issuing authority for TRN and Emirates ID is different as well. As an individual, you need to apply to the Federal Authority for Identity, Citizenship Customs & Port Security (ICP) to obtain your Emirates ID. If you are a business owner, you must apply to the Federal Tax Authority (FTA) to register your business and get a valid tax registration number or TRN.
Business owners will need TRN for all types of formal communications with the authorities and regulatory bodies. Here are some of the activities that will require business owners to have a valid business TRN:
- Tax invoice preparation
- Tax credit note
- VAT and Tax return filing
- Invoicing customers where a VAT is applicable
A Tax Registration Number serves as a legal identity for businesses in Dubai and the UAE. The government of the UAE introduced VAT in January 2018 with up to 5% for businesses across various sectors. The purpose of VAT was to make the UAE less dependent on oil and more on sustainable economic activities.
According to the taxation procedure outlined by the FTA, when you invoice your customers, you will charge up to 5% VAT on the total payment made by the customer.
There have been many instances where fraudulent businesses that do not have a valid TRN charge the VAT amount from the customers but do not pay it to the government. Illegally charging VAT is fraudulence that harms the entire business community, customers, and the government. Not only do businesses lose money, but the individuals targeted can also have their personal identification information compromised.
To end this malpractice, the UAE government has introduced a simple process of TRN verification in Dubai and the UAE for customers and businesses to verify TRN online in no time.
As a business owner, you cannot charge VAT to customers unless you have a verified TRN. This may cause you substantial trouble, including fines and even business licence suspension when you file your financial reports.
Customers can easily go ahead with TRN verification Dubai to ensure that their money goes to the right authority and the business for which they are paying the VAT is authorised to receive the VAT payment.
For the past several years, the UAE government has been aiming to transform Dubai and the UAE into a global business hub and reduce the country’s dependence on the oil-based economy. Streamlining the process of TRN Verification in Dubai is one of the steps undertaken by the UAE government to create a business-friendly environment.
The UAE now offers plenty of growth opportunities to foreign investors. It takes less than a week to register your business in the UAE and get going. Virtuzone helps you get started with your UAE business in no time. You will find comprehensive VAT and tax consultation along with complete business setup guidelines at Virtuzone.
When operating your business in the UAE, ensure that it has a valid TRN and passes the TRN verification in the UAE.